Although progress has been made and the work undertaken by international organisations is well on track, a number of challenges remain, the FSF report concludes. The final FSF report is expected for September 2008.
Although progress has been made and the work undertaken by international organisations such as IOSCO, the IASB and national authorities is well on track, a number of challenges remain, the FSF report concludes. Despite central bank liquidity operations, term money markets in the major currencies remain subject to volatility and wide spreads, the report states. Many securitisation markets remain disrupted and assets continue to accumulate on banks’ balance sheets.
The Basel Committee will publish later this year proposals for establishing higher capital requirements for complex structured credit products; strengthening the capital treatment of liquidity facilities extended to off-balance sheet vehicles; and strengthening the capital requirements in the trading book.
It is also in the process of developing guidance to enhance the supervisory assessment of banks’ valuation processes by end-2008.
IOSCO will come forward with a review on the CRAs Code of Conduct later this year.
The Joint Forum will finalise a stocktaking of the uses of credit ratings by its member authorities in the banking, securities and insurance sectors by end-2008.
The full FSF report is expected for 29 September.
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