This week's risk management news includes FSoC's criteria for identifying systemically important market infrastructures, ESRB's discussion on sharing regulatory roles, and South Korea's increased supervision of savings banks.
March 23, 2011 | The Asian Banker Editor
FSoC proposes criteria for identifying systemically important market infrastructures
The United States Financial Stability Oversight Council (FSoC) has proposed criteria for identifying systemically important financial market infrastructures, which conduct payments, securities or other financial transactions between financial institutions and investors, and has invited public comment. The criteria proposed include the aggregate monetary value of transactions processed by a financial market infrastructure, its exposure to counterparties, and other transactions it is involved in.
The full document can be accessed here.
ESRB discusses regulatory division of labour
The European Systemic Risk Board (ESRB) recently held a discussion concerning how it will share regulatory responsibilities with the European Banking Authority (EBA), the European Securities and Markets Agency (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA). The ESRB also discussed collaborating with the EBA to implement countercyclical buffers according to Basel III. Additionally, it also finalised the membership of its advisory scientific committee which will be responsible for enhancing risk detection and their impact, and designing suitable macroprudential tools.
South Korea to increase supervision of savings banks
South Korea’s Financial Services Commission, Financial Supervisory Service and the Korea Deposit Insurance Corporation will increase their joint supervision and monitoring of the country’s savings banks. The financial regulators plan to restrict the amount of loans given out by the banks and limit the amount of risky assets they can include in their balance sheets. Additionally, they may measure the banks’ capital ratios to ensure their financial viability.
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Risk And Regulation Working Group
