Archives - Financial Regulation and Supervision

• 15 December 2019 Consolidated Basel Framework - liquidity coverage ratio (LCR)

  This standard describes the Liquidity Coverage Ratio, a measure which promotes the short-term resilience of a bank's liquidity risk profile.
  Last updated: December 2022

  Content Type(s): Compendium Source(s): BCBS Policy Area(s): Financial Regulation and Supervision

• 15 December 2019 Consolidated Basel Framework - net stable funding ratio (NSF)

  The net stable funding ratio requires banks to maintain a stable funding profile in relation to the composition of their assets and off-balance-sheet activities.

  Content Type(s): Compendium Source(s): BCBS Policy Area(s): Financial Regulation and Supervision

• 15 December 2019 Consolidated Basel Framework – large exposure (LEX)

  Large exposures regulation limits the maximum loss that a bank could face in the event of a sudden counterparty failure to a level that does not endanger the bank's solvency. This standard requires banks to measure their exposures to a single counterparty or a group of connected counterparties and limit the size of large exposures in relation to their capital.

  Content Type(s): Compendium Source(s): BCBS Policy Area(s): Financial Regulation and Supervision

• 15 December 2019 Consolidated Basel Framework - margin requirements (MGN)

  This standard establishes minimum standards for margin requirements for non-centrally cleared derivatives. Such requirements reduce systemic risk with respect to non-standardised derivatives by reducing contagion and spillover risks and promoting central clearing.

  Content Type(s): Compendium Source(s): BCBS Policy Area(s): Financial Regulation and Supervision

• 13 December 2019 Recommendations for a framework assessing leverage in investment funds

  Drawing on established national and regional regimes for measuring, collecting and analysing information related to leverage in funds, IOSCO has developed a two-step framework – the “Leverage Framework' – to facilitate more meaningful monitoring of leverage in funds for financial stability purposes in a consistent manner across jurisdictions.

  Content Type(s): Compendium Source(s): IOSCO Policy Area(s): Financial Regulation and Supervision

• 27 November 2019 Guiding principles for the operationalisation of a sectoral countercyclical capital buffer

  These guiding principles are intended to support the implementation of a sectoral countercyclical capital buffer on a consistent basis across jurisdictions.

  Content Type(s): Compendium Source(s): BCBS Policy Area(s): Financial Regulation and Supervision

• 14 November 2019 Insurance Core Principles, Standards, Guidance and Assessment Methodology

  The IAIS has issued the Insurance Core Principles (ICPs) as the globally accepted framework for insurance supervision. The ICPs seek to encourage the maintenance of consistently high supervisory standards in IAIS member jurisdictions. A sound supervisory system is necessary for the protection of policyholders and promoting the stability of the financial system and should address the broad set of risks within, and posed by, the insurance sector.

  Content Type(s): Compendium Source(s): IAIS Policy Area(s): Financial Regulation and Supervision Topic(s): Prudential Supervision and Oversight

• 14 November 2019 Common Framework for the Supervision of Internationally Active Insurance Groups

  The Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame) establishes supervisory standards and guidance focusing on the effective group-wide supervision of Internationally Active Insurance Groups (IAIGs). ComFrame is a comprehensive and outcome-focused framework aimed at facilitating effective group-wide supervision of IAIGs, by providing qualitative and (in a future phase) quantitative supervisory minimum requirements tailored to the international activity and size of IAIGs.

  Content Type(s): Compendium Source(s): IAIS Policy Area(s): Financial Regulation and Supervision

• 14 November 2019 Application Paper on Recovery Planning

  The Application Paper on Recovery Planning provides guidance with respect to supervisory material related to recovery planning in the Insurance Core Principles (ICPs) and the Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame). In particular, it is related to the material in ICP 16.15 and ComFrame 16.15.a and 16.15.b (ICP 16 Enterprise Risk Management for Solvency Purposes), and is also relevant to supervisory cooperation and coordination arrangements set out in ICP 23 (The Group-wide Supervisor) and ICP 25 (Supervisory Cooperation and Coordination).

  Content Type(s): Compendium Source(s): IAIS Policy Area(s): Financial Regulation and Supervision

• 14 November 2019 Holistic Framework for the assessment and mitigation of systemic risk in the insurance sector (“Holistic Framework“)

  In November 2019, the IAIS adopted the holistic framework for the assessment and mitigation of systemic risk in the insurance sector (“holistic framework'), for implementation from the beginning of 2020. The holistic framework is an integrated set of supervisory policy measures, a Global Monitoring Exercise, and implementation assessment activities.

  Content Type(s): Compendium Source(s): IAIS Policy Area(s): Financial Regulation and Supervision