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European Council Conclusions 10 – 11 December: the new supervisory framework to be operational during 2010
Government heads welcome the Council's adoption of a general approach to CRD. They believe that remuneration policies within the financial sector will promote sound and effective risk management and contribute to future financial stability.
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Trichet: proposed establishment of European Systemic Risk Board is a very important initiative for containing systemic risks
At a Cambridge University conference he set out the new challenges for macro-economic supervision, including controlling the very fast growth of innovative financial instruments and new intermediaries, in particular, off-balance sheet vehicles.
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Commission issues European Financial Integration Report 2009
The report maps out the current state of play on integration, efficiency, competition and stability of the European financial services sector. Key issues addressed include the future financial integration in the EU and its efficiency towards the US. A summary of the financial services policy achievements in 2009 is also attached.
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Basel Committee consults on liquidity risk measurement, standards and monitoring
The Basel Committee consults on proposals to strengthen global capital and liquidity regulations. Issues include the Tier 1 capital base, capital buffers, capital requirements for counterparty credit risk, and minimum liquidity standards for internationally active banks.
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UK Treasury consults on plans to manage investment bank failures
The consultation contains a set of measures to enable the managed wind-down of an investment firm. These include the development of resolution plans for firms, a set of special administration objectives and new responsibilities for the board.
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FT: France to follow UK on bonus tax - bonuses exceeding €27000 to be taxed
Germany is unlikely to follow the UK example. Neither is the US, which will control bonuses only where banks have received state aid and not yet given it back. Bank bonuses remain a hot issue since the G20 tackled remuneration policies at global level.
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FT: Tobin tax remains UK Treasury ambition
Following the September G20 summit, in which Gordon Brown's suggestion to introduce a financial transaction tax (FTT) met with a sceptical response from global finance ministers, the UK government is still pushing for a global tax on financial transactions.
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Myners speech: 'What’s next for UK banking?' – It is vital to end the risk-taking and excessive rewards culture that is damaging the system
'It is right that public opinion has undertaken a vigorous public debate on the causes of the crisis. A prosperous, sound, responsible banking system is an international asset that the Government wants to promote and it needs to succeed', Myners said.
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FSA strengthens stress-testing regime – key element in building up effective risk management
An integrated approach comprises 3 main elements: firms' own stress-testing, FSA stress-testing of specific firms and simultaneous system-wide stress testing. The aim is to ensure a firm's senior management knows how long it can survive during a long crisis.
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House approves new rules on US Financial System
The Wall Street Reform and Consumer Protection Act will create a Financial Stability Oversight Council for systemic risks, establish reforms for the OTC Derivative Markets, introduce a 5% retention rate and address the too-big-to-fail issue by introducing a Systemic Dissolution Fund.
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Japan Round Table Committee: report on Japan's future financial system
The Committee stressed the urgency of reforming the financial intermediary function of the Japanese banking sector, deemed to have relied on credit security based on collateral. It is also calling for a more proactive role when it comes to international rule-making.
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