International Regulatory Digest

发布时间:2019年1月8日 17:53

G20 financial regulatory reforms

On 5 July 2018, the BCBS released the Global Systemically Important Banks: Revised Assessment Methodology and the Higher Loss Absorbency Requirement, consistent with the agreement to review the G-SIB framework every three years to allow opportunity for its enhancement. Building on member jurisdictions experience and the feedback received during last years public consultation, the BCBS has reconfirmed the fundamental structure of the G-SIB framework there is general recognition that the framework is meeting its primary objective of requiring G-SIBs to hold higher capital buffers and providing incentives for such firms to reduce their systemic importance.

The decision to maintain the core elements of the G-SIB framework also contributes to the stability of the regulatory environment following the end-2017 finalisation of the Basel III post-crisis reforms. Nevertheless, based on the review, a number of enhancements to the G-SIB framework have been agreed, including the extension of the scope of consolidation to insurance subsidiaries and the introduction of a trading volume indicator in the substitutability category. The revised G-SIB assessment methodology is expected to be implemented in member jurisdictions by 2021.

On 18 July, the FSB published a consultation report, for comment by 22 August, on the Evaluation of the Effects of Financial Regulatory Reforms on Infrastructure Finance. This evaluation is the first under the FSB framework for the post-implementation evaluation of the effects of the G20 financial regulatory reforms, and forms part of a broader FSB examination of the effects of reforms on financial intermediation. It focuses on infrastructure finance that is provided in the form of corporate and project debt financing (loans and bonds), for which the financial regulatory reforms are of immediate relevance; and concludes that the effect of the G20 financial reforms on infrastructure finance is of a second order relative to other factors. In particular, for the reforms that have been largely implemented and are most relevant for this evaluation the analysis thus far does not identify material negative effects on the provision and cost of infrastructure finance.

On 19 July, the BIS published a report, Survey on the Interaction of Regulatory Instruments: Results and Analysis, which aims to summarise and analyse the results of the second wave of the survey conducted by the BCBSs Research Task Force on the role of multiple regulatory constraints in the Basel III framework (the results of the first wave were published in February 2017). Some aggregate results are broken down by bank groups and geography. To provide additional insights (and check data quality), banks answers from this survey are merged to banks information on the other topics collected through the Basel III monitoring exercise. The authors find that there is a great degree of consistency across topics and, also, between the two survey waves.

A meeting of G20 finance ministers and central bank governors was held in Buenos Aires, on 21-22 July, preceded by a meeting of deputies. Considering ongoing financial regulatory reform, the communiqué issued at the close of the meeting says (paragraph #9): “The financial system must remain open, resilient and supportive of growth. We remain committed to the full, timely and consistent implementation and finalisation of the post-crisis reforms, and the evaluation of their effects. We welcome progress on the evaluations by the FSB and standard setting bodies of the effects of the reforms on infrastructure financing and incentives to centrally clear OTC derivatives and we expect the final results by the Leaders’ Summit. We look forward to the FSB’s continuing progress on achieving resilient, market-based finance. We continue to monitor and, if necessary, address emerging risks and vulnerabilities in the financial system.”

In brief, other points in the communiqué include:

we welcome progress on the Roadmap to infrastructure as an Asset Class;

we continue monitoring cross-border capital flows and examining available tools to help countries harness their benefits while also managing risks;

we reaffirm our commitment to further strengthening the global financial safety net, with a strong, quota-based, and adequately resourced IMF at its centre;

we continue to monitor debt vulnerabilities in Low Income Countries with concern;

we are looking forward to the report on Global Financial Governance;

technological innovations, including those underlying crypto-assets can deliver significant benefits to the financial system; but crypto-assets do raise issues and we welcome work to monitor their potential risks;

we support a globally fair, sustainable, and modern international tax system;

mobilising sustainable finance and strengthening financial inclusion are important for global growth; and our fight against terrorist financing, money laundering and proliferation financing continues.

The BCBS met in Basel, on 19-20 September, to discuss a range of policy and supervisory issues, and to take stock of its members’ implementation of post-crisis reforms:

the results of the annual assessment exercise for G-SIBs were approved and will be submitted to the FSB before it publishes the 2018 list of G-SIBs – it was also agreed to publish the high-level indicator values of all the banks that are part of the G-SIB assessment exercise;

finalisation of revisions to the market risk framework is expected by around the end of the year;

a newsletter will be published on leverage ratio window-dressing behaviour around regulatory reporting dates – Pillar 1 (minimum capital requirements) and Pillar 3 (disclosure) measures to prevent this behaviour will be considered

clarification of the treatment of “settled-to-market” derivatives in the liquidity standards has been agreed and an FAQ has been published on this topic;

the outcome of the BCBS review of the impact of the leverage ratio on client clearing was discussed, as was an associated joint consultation paper by the BCBS, FSB, CPMI and IOSCO on the effects of post-crisis reforms on incentives to CCP clear OTC derivatives – a consultation paper will be published in October to seek the views of stakeholders as to whether the exposure measure should be revised and, if so, on targeted revision options;

it was agreed to publish, in October, a revised version of the BCBS Principles on Stress Testing, following the consultation paper published in December 2017; and

views were exchanged on emerging conjunctural and structural risks, partially focusing on banks’ exposures to crypto-assets and the risks such assets may pose – further work on this topic was agreed.

BCBS members, whose next meeting is scheduled for 26-27 November in Abu Dhabi, reiterated their expectation of full, timely and consistent implementation of the Basel III standards for internationally-active banks.

On 25 September, the FSB and the IMF published the third progress report on the implementation of the second phase of the G20 Data Gaps Initiative (DGI-2). This report updates on the work undertaken since September 2017 to advance implementation of the 20 recommendations aimed at addressing the data gaps identified after the global financial crisis and promoting the regular flow of timely and reliable statistics for policy use. The progress report highlights the following:

considerable progress was made by the economies participating in DGI-2 during its second year;

key challenges remain, and high-level political support is crucial to overcome them; and

further progress in implementing the DGI-2 is expected from the participating economies and will be reported to G20 Finance Ministers and Central Bank Governors.

Contact: David Hiscock david.hiscock@icmagroup.org