Most banks have established compensation practices and procedures to reduce inappropriate risk-taking, but their effectiveness is still being tested, the Financial Stability Board (FSB) said in a report

To address concerns over quarterly bank window dressing activities to flatter their leverage ratio numbers, the Basel Committee on Banking Supervision is asking banks for greater disclosure around their securities financing transactions (SFT).

Revisions have been made to the leverage ratio treatment of client cleared derivatives by the Basel Committee on Banking Supervision in the standardised approach to measuring counterparty credit risk exposures (SA-CCR).

Harvesting the benefits while containing the risks associated with big tech’s entry into financial services needs a comprehensive approach drawing on financial regulation, competition policy and data privacy rules, the Bank for International Settlements (BIS) said in its annual report.

In a letter dated June 25 to G20 leaders, the Financial Stability Board (FSB) said it remains vigilant over the emergence of new risks, wants to harness the benefits of innovation, complete agreed global reforms, promote an integrated financial system and strengthen the body’s accountability. 

Former French finance minister and head of the IMF has been nominated by the European Council to replace Mario Draghi as president of the European Central Bank.

On July 1, equivalence measures between the EU and Switzerland allowing investment firms from the two jurisdictions to freely trade shares on each others’ exchanges ceased.

The US’s two main markets regulators are to work more closely together on how to better understand and manage portfolio margins in the credit derivatives market.  

Congressmen in the House of Representatives agriculture committee hit out EU plans to toughen derivatives supervision labelling it as retribution during a hearing held on June 26.