A slew of feedback for the FSB 31 January 2013Switzerland Reporter: Georgina Lavers
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Seventy different firms and associations have crafted replies to the Financial Stability Board's (FSB's) 2012 consultative documents, which included an initial integrated set of policy recommendations, on strengthening oversight and regulation of shadow banking.
The FSB's 13 recommendations to address shadow banking risks in securities lending and repos are of particular importance to the industry, as they look to enhance transparency, strengthen regulation of securities financing transactions, and improve market structure.
Banks including Deutsche Bank and the Central Bank of Ireland, asset management firms such as BlackRock, BVI and Amundi, and associations such as the Risk Management Association (RMA) and the Canadian Bankers Association, wrote detailed recommendations on the proposed policies.
Replies universally stressed that securities financing markets are an essential component of the financial markets as a whole and regulatory interventions in this space need to be advanced carefully.
Many centred around scope and overlap, especially in light of work by the Basel Committee to strengthen liquidity and ensure prudent balance sheet risk management.
Most were agreed that transparency was a prudent concern of the FSB, but warned that again, overlap would have to be taken into account with any policy updates.
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