Publications
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2 April 2009 Addressing Financial System Procyclicality: A Possible Framework
This note aims to provide an overall framework that could help evaluate policy options to address the procyclicality of the financial system. While the framework is general in nature, the note focuses exclusively on options for prudential and financial reporting arrangements and the associated risk management and incentives issues. It therefore excludes other possible policy […] -
2 April 2009 Joint FSF-BCBS Working Group on Bank Capital Issues - Reducing procyclicality arising from the bank capital framework
This note sets out recommendations to address the potential procyclicality of the regulatory capital framework for internationally active banks. Some of these recommendations are focused on mitigating the cyclicality of the minimum capital requirement, while maintaining an appropriate degree of risk sensitivity. Other measures are intended to introduce countercyclical elements into the framework. The recommendations […] -
2 April 2009 Report of the FSF Working Group on Provisioning
Consistent with statements made in the "Report of the Financial Stability Forum on Enhancing Market and Institutional Resilience" (7 April 2008) (FSF Report - April 2008), and as described more fully in a follow up to that report issued on 10 October 2008 (FSF Report - October 2008), the Financial Stability Forum (FSF) has set […] -
2 April 2009 Joint FSF-CGFS Working Group - The role of valuation and leverage in procyclicality
This report explores the link between leverage and valuation in the light of the recent experience of market stress. Prior to the crisis, traditional balance sheet measures of leverage did not give an unambiguous signal of higher risk during the boom years of 2003-07. While balance sheet leverage increased at European banks and US investment […] -
13 November 2008 Joint Letter of the FSF Chairman and the IMF Managing Director to G20 Ministers and Governors
Dear Ministers and Governors: The financial crisis has underscored the importance of international coordination both in responding to the crisis and in developing and implementing policies for a sounder financial system. Coordination is important as well across the international financial institutions and bodies that support the efforts of national governments, including the IMF and the […] -
14 October 2008 FSF Report on Enhancing Market and Institutional Resilience
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15 September 2008 Ongoing and Recent Work Relevant to Sound Financial Systems
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14 June 2008 Update on the Implementation of the FSF's Recommendations
I. Current situation of the financial system Financial markets and institutions continue to make progress in adjusting to the new conditions that have prevailed since the outbreak of market turbulence. Banks and other financial institutions have raised substantial amounts of new capital and further capital raising plans have been announced. Institutions have also moved to […]