2 April 2009 Report of the FSF Working Group on ProvisioningConsistent 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 […]
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 […]
The recommendations cover the following areas: the bank capital framework, bank loan loss provisions, and leverage and valuation.
The objective of financial crisis management is to seek to prevent serious domestic or international financial instability that would have an adverse impact on the real economy.
13 November 2008 Joint Letter of the FSF Chairman and the IMF Managing Director to G20 Ministers and GovernorsDear 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 […]
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 […]