Financial Stability Board

Big Picture

FSB Warns of Excessive Concentration Risk in in Commodity Markets

By Mark Johnston | 20/02/2023

The concentration of market power among a few firms and their reliance on debt increases the potential for market disruptions in commodity markets.

Capital / Liquidity

FSB Calls for Research on Post-GFC Securitisation Reforms

By Editors | 20/02/2023

The FSB is seeking academic papers that examine the extent to which securitisation operates on a sound and sustainable basis and provides appropriate alignment of incentives.

Crypto / Digital Assets

FSB Assesses DeFi Vulnerabilities and How to Address Them

By Manesh Samtani | 17/02/2023

The FSB will consider changes to its proposed crypto regulatory framework to account for DeFi-specific risks, and policy responses to address TradFI-DeFi interactions.

Big Picture

Tokenisation Can Threaten Financial System Stability: Denis Beau

By Mark Johnston | 25/01/2023

Banque de France official says tokenisation increases operational risks, especially cyber risks, and needs to be regulated “as swiftly as possible”.

Capital / Liquidity

Implementation of 2013 NBFI Reforms Are Incomplete: FSB

By Editors | 19/01/2023

Jurisdictions have not finished implementing Basel III reforms to mitigate spillovers between banks and non-bank financial entities.

Market Infrastructure

FSB Offers LIBOR Transition Update, Warns of ‘Residual Risks’

By Manesh Samtani | 19/12/2022

Regulators continue to express concerns that the use of Term SOFR and credit sensitive rates could draw away liquidity from the overnight SOFR derivatives markets.

Capital / Liquidity

Basel Rules for Cryptoassets to Take Effect in Jan 2025

By Manesh Samtani | 19/12/2022

1,250% risk weight not applicable to custodied assets. Infrastructure risk add-on no longer mandatory. Gross limit on total Group 2 exposures raised from 1% to 2%.

Capital / Liquidity

FSB to Revise Recommendations on Fund Liquidity Management

By Editors | 15/12/2022

Open-ended funds with illiquid assets should only be allowed to offer daily dealing if they use tools that pass on redemption costs to redeeming investors.

Capital / Liquidity

Global Banking System More Resilient After Basel Reforms: BCBS

By Editors | 15/12/2022

Banks that were more heavily affected by the Basel III reforms saw a greater reduction in their cost of capital, the BCBS said.