Ryozo Himino appointed Chair of the FSB’s Standing Committee on Supervisory and Regulatory Cooperation

2 September 2019

Press enquiries:
+41 61 280 8138
[email protected]
Ref no: 30/2019

The Financial Stability Board (FSB) has appointed Ryozo Himino, Vice Minister for International Affairs at the Japanese Financial Services Agency, as Chair of the FSB’s Standing Committee on Supervisory and Regulatory Cooperation (SRC), for a two-year term starting on 1 September 2019.

Mr. Himino succeeds Norman Chan, Chief Executive of the Hong Kong Monetary Authority, who has served as SRC Chair since April 2017.

The SRC’s mandate includes addressing key financial stability issues relating to the development of supervisory and regulatory policies; assisting in managing the coordination issues that arise among supervisors and regulators on issues that have cross-sector implications; setting guidelines for and overseeing the establishment and effective functioning of supervisory colleges; and advising on and monitoring best practice in meeting regulatory standards.

Randal K. Quarles, FSB Chair, welcomed Mr Himino’s appointment, noting his long and distinguished career in public service and his deep experience in international supervisory and regulatory policy matters. He also expressed the FSB’s appreciation for Norman Chan’s effective chairmanship of the SRC and his commitment to the FSB since he became a member in October 2009.

Notes to editors

Ryozo Himino has been the Vice Minister for International Affairs of the Japanese Financial Services Agency since 2016. At the Agency, he has supervised banks, insurance companies, broker dealers and audit firms and regulated capital markets during the last two decades. He also served as the Secretary General of the Basel Committee on Banking Supervision from 2003 to 2006.

The FSB coordinates at the international level the work of national financial authorities and international standard-setting bodies and develops and promotes the implementation of effective regulatory, supervisory, and other financial sector policies in the interest of financial stability. It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts. The FSB also conducts outreach with approximately 70 other jurisdictions through its six Regional Consultative Groups.

The FSB is chaired by Randal K. Quarles, Governor and Vice Chairman for Supervision, US Federal Reserve; its Vice Chair is Klaas Knot, President, De Nederlandsche Bank. The FSB Secretariat is located in Basel, Switzerland, and hosted by the Bank for International Settlements.

Industry workshop on continuity of access to FMIs for firms in resolution

28 August 2019 | PDF full text (213 KB)

This note provides an informal summary of a workshop on implementation of the FSB’s Guidance on Continuity of Access to Financial Market Infrastructures (“FMIs”) for a Firm in Resolution held in Basel in May 2019. The workshop provided an opportunity for industry participants to share views and experiences in implementing the Guidance and to discuss ways to support and enhance this work to facilitate continuity of access to FMIs for a firm in resolution. We thank all those who participated in the workshop.

The FSB has committed to monitoring implementation of the Guidance and to consider what further actions could be undertaken to assist authorities and firms in their implementation efforts.

As part of the 2018 review of its processes and transparency to maximise its effectiveness, the FSB decided to make more frequent use of stakeholder workshops to support its outreach. This workshop is part of the follow-up to that decision.

Public responses to the Evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing

21 August 2019

Summary of document history

Summary of document history

On 7 June 2019, the FSB published an Evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing for public consultation. Interested parties were invited to provide written comments by 7 August 2019. The public comments received are available below.

Responses received

The FSB thanks those who took the time and effort to express their views. The FSB expects to publish the final evaluation report in November 2019, along with a summary on how the FSB has responded to consultation responses.

FSB Financial Statements: 2018/2019

19 August 2019 | PDF full text (547 KB)

This report provides the FSB’s audited financial statements for the financial year April 2018 to March 2019. The report also details the FSB’s governance structure.

The FSB will publish its annual report on the implementation and effects of the financial reforms in October.

Public responses to consultation on Solvent Wind-down of Derivatives and Trading Portfolios

On 3 June 2019, the FSB published a consultation document on proposed Solvent Wind-down of Derivatives and Trading Portfolios. Interested parties were invited to provide written comments by 2 August 2019. The public comments received are available below.

Responses received

The FSB thanks those who took the time and effort to express their views. The FSB expects to publish a summary of findings and set out possible next steps in late 2019.

Public responses to consultation on Public Disclosure of Resolution Planning and Resolvability

On 3 June 2019, the FSB published a consultation document on proposed Public Disclosure of Resolution Planning and Resolvability. Interested parties were invited to provide written comments by 2 August 2019. The public comments received are available below.

Responses received

The FSB thanks those who took the time and effort to express their views. The FSB expects to publish a summary of findings and set out possible next steps in late 2019.

FSB adjusts implementation timelines for its policy recommendations to address financial stability risks in securities financing transactions

19 July 2019

Press enquiries:
+41 61 280 8138
[email protected]
Ref no: 29/2019

The Financial Stability Board (FSB) today announced adjustments to the implementation timelines for its recommendations on securities financing transactions (SFTs), specifically those related to minimum haircut standards for non-centrally cleared SFTs.

SFTs such as securities lending and repurchase agreements (repos) play a crucial role in supporting price discovery and secondary market liquidity for a wide variety of securities. However, such transactions can also be used to take on leverage as well as maturity and liquidity mismatched exposures, and therefore can pose risks to financial stability.

As part of its work to enhance the resilience of non-bank financial intermediation, the FSB developed 18 policy recommendations to address financial stability risks that arise from SFTs such as repos and securities lending. These recommendations are published in the August 2013 report Policy Framework for Addressing Shadow Banking Risks in Securities Lending and Repos and updated in the November 2015 report Regulatory framework for haircuts on non-centrally cleared securities financing transactions.

Although FSB member jurisdictions are making progress in implementing these policy recommendations, their implementation has seen significant delays in some jurisdictions, especially for the recommendations related to minimum haircuts standards for non-centrally cleared SFTs used by banks to provide financing to non-banks. These delays stem mainly from the new date for implementing the minimum haircut standards on bank-to-non-bank SFTs into banking regulation as part of the Basel III framework, which is now January 2022.

The FSB has therefore decided to adjust the implementation timelines for its recommendations related to minimum haircuts standards for non-centrally cleared SFTs, including those related to quantitative standards, i.e. the framework of numerical haircut floors (Recommendations 14-18: see updated Annexes 1, 3 and 4 of the November 2015 reportfor details). For example, the implementation timelines for the policy recommendations related to the framework of numerical haircut floors will be extended to January 2022 (instead of end-2018) for bank-to-non-bank transactions and to January 2024 (instead of end-2019) for non-bank-to-non-bank transactions. The implementation timelines for other recommendations remain unchanged.

Going forward, the FSB will continue to monitor implementation of its policy recommendations for SFTs so as to both address financial stability risks in the SFT markets as well as enhance the resilience of non-bank financial intermediation.

Notes to editors

To address financial stability risks from SFTs, the FSB developed 18 policy recommendations published in August 2013 and updated in October 2015. These recommendations cover:

  • Improvements to regulatory reporting and market transparency of SFTs (Recommendations 1-5) – collection of granular SFT data; global SFT data collection and aggregation through the FSB (see also FSB Standards and Processes for Global Securities Financing Data Collection and Aggregation published in November 2015); improvement to financial institutions’ public disclosures through the Enhanced Disclosure Task Force; and review of reporting requirements for fund managers to end-investors.
  • Regulation of SFTs (Recommendations 6-9 and 12-18) – minimum standards for cash collateral reinvestment, principles for regulations governing re-hypothecation of client assets; minimum regulatory standards for collateral valuation and management; and minimum haircut standards for non-centrally cleared SFTs (including the framework of numerical haircut floors).
  • Structural aspects of SFT markets (Recommendations 10-11) – evaluation of the possible introduction of central clearing for inter-dealer repos.

The FSB coordinates at the international level the work of national financial authorities and international standard-setting bodies and develops and promotes the implementation of effective regulatory, supervisory, and other financial sector policies in the interest of financial stability. It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts. The FSB also conducts outreach with approximately 70 other jurisdictions through its six Regional Consultative Groups.

The FSB is chaired by Randal K. Quarles, Vice Chairman for Supervision, US Federal Reserve; its Vice Chair is Klaas Knot, President, De Nederlandsche Bank. The FSB Secretariat is located in Basel, Switzerland, and hosted by the Bank for International Settlements.

Cyber Incident Response and Recovery: Survey of Industry Practices

11 July 2019 | PDF full text (282 KB)

The FSB is developing a toolkit of effective practices relating to a financial institution’s response to, and recovery from, a cyber incident. The toolkit aims to provide financial institutions and authorities with a set of effective practices and will be based on the shared experience and diversity of perspectives gathered by the FSB, including through responses to its survey of industry practices.

This survey is a key element of the FSB’s outreach strategy with external stakeholders to gather views on effective practices relating to financial institutions’ response to, and recovery from, a cyber incident. The development of the toolkit will also be informed by a review of publicly available documents on how firms have responded to and recovered from past cyber incidents and a stocktake of relevant publicly released guidance issued by national authorities and international organisations.

The survey closes on Wednesday, 28 August.