FSB calls on G20 to address shadow bank risks following March volatility

Following market turmoil in March, the Financial Stability Board (FSB) has called for vulnerabilities in non-bank financial intermediation (NBFI) to be addressed. 

ESMA instructs exposed funds to prepare for future shocks

Investment funds with significant exposures to corporate debt and real estate assets have been told by the European Securities and Markets Authority (ESMA) to anticipate potential future adverse liquidity and valuation shocks.

US agencies finalise NSFR rule with some tweaks

Proposals over measures to ensure the resilience of banks during periods of financial stress in the US have been revised and a rule finalised, with the latter coming into force in mid-2021

US Treasury market still dogged by liquidity threats

The US Treasury market still has the potential to experience sudden liquidity droughts, such as those witnessed in March and April as the Covid-19 pandemic unleashed a wave of volatility across markets. 

Money market funds potentially face more rules

New rules for money market funds could be in the works following comments from deputy US Treasury Secretary Justin Muzinich that the reforms dating from the 2007-9 global financial crisis may not go far enough. 

FINMA consults on minor tweaks to liquidity regime

Interested parties are being asked to comment on minor amendments to Switzerland’s liquidity regime for banks by the Swiss Financial Market Supervisory Authority (FINMA).

LCR modified for banks participating in two Fed programmes

US federal prudential regulators have modified the liquidity coverage ratio (LCR) for banks participating in the Money Market Mutual Fund Liquidity Facility and the Paycheck Protection Program Liquidity Facility.

Guy Warren

How resilient is your trading infrastructure?

Firms must ensure their trading infrastructure has the capacity to cope in the face of the current soaring volumes 

Central bank stimulus needs to go the last mile to reach the real economy

Measures taken by central banks need to travel “the last mile” so they reach individuals and businesses and this bridge is not yet in place, warned Agustín Carstens, general manager at the Bank for International Settlements (BIS).

Alexandra Foster

Open banking impact may force regulators to reconsider prudential measures

Not only will open banking shake-up the financial services industry, but it could also unleash financial stability issues, which are attracting the attention of prudential regulators