FSB completes peer reviews of Singapore and Hong Kong
01 March 2019 Basel
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The Financial Stability Board has released peer reviews for both Singapore and Hong Kong.
The Hong Kong peer review, released on 28 February, examined two topics relevant for financial stability, over-the-counter (OTC) derivative market reforms, and the framework for resolution of financial institutions.
The review focused on the steps taken by the authorities to implement reforms in these areas, by following up on relevant International Monetary Fund (IMF) Financial Sector Assessment Program (FSAP) recommendations and G20/FSB commitments.
The FSB said that “good progress has been made in recent years on both topics, reflecting Hong Kong’s strong commitment to implementing international standards, driven by its status as an international financial centre”.
It added: “The authorities have put in place a well-defined legal and regulatory framework – in terms of scope, assignment of responsibilities and enforcement – to implement the G20 commitments to reform OTC derivatives markets.”
“Considerable progress has been made in implementing some OTC derivatives reform areas – trade reporting, central clearing, margin/capital requirements for non-centrally cleared derivatives – while work is underway to implement the remaining areas and measures.”
The FSB has also published its peer review of Singapore, focusing on the macroprudential policy framework and the framework for resolution of financial institutions.
This review, released on 26 February, focused on the steps taken by the authorities to implement reforms in these areas.
This is included the following up on relevant International Monetary Fund (IMF) Financial Sector Assessment Program (FSAP) recommendations, as well as G20 and FSB reforms.
The peer review found that good progress has been made in recent years on both topics, which the FSB said reflects Singapore’s “strong adherence to international standards and focus on financial stability”.
However, the FSB stated that “Singapore needs to clarify responsibility within Monetary Authority of Singapore for the calibration and implementation of its macroprudential policies”, and should “continue to enhance the risk assessment framework in terms of process, use of modelling tools and ongoing work to assess systemic risks from fintech”.
On the framework for resolution of financial institutions, FSB said Singapore should “continue working to refine, expand and operationalise resolution planning”.
This included continuing resolution planning on “domestic systemically important banks as well as for insurance companies and financial market infrastructures that could be systemic in failure”.
The Hong Kong peer review, released on 28 February, examined two topics relevant for financial stability, over-the-counter (OTC) derivative market reforms, and the framework for resolution of financial institutions.
The review focused on the steps taken by the authorities to implement reforms in these areas, by following up on relevant International Monetary Fund (IMF) Financial Sector Assessment Program (FSAP) recommendations and G20/FSB commitments.
The FSB said that “good progress has been made in recent years on both topics, reflecting Hong Kong’s strong commitment to implementing international standards, driven by its status as an international financial centre”.
It added: “The authorities have put in place a well-defined legal and regulatory framework – in terms of scope, assignment of responsibilities and enforcement – to implement the G20 commitments to reform OTC derivatives markets.”
“Considerable progress has been made in implementing some OTC derivatives reform areas – trade reporting, central clearing, margin/capital requirements for non-centrally cleared derivatives – while work is underway to implement the remaining areas and measures.”
The FSB has also published its peer review of Singapore, focusing on the macroprudential policy framework and the framework for resolution of financial institutions.
This review, released on 26 February, focused on the steps taken by the authorities to implement reforms in these areas.
This is included the following up on relevant International Monetary Fund (IMF) Financial Sector Assessment Program (FSAP) recommendations, as well as G20 and FSB reforms.
The peer review found that good progress has been made in recent years on both topics, which the FSB said reflects Singapore’s “strong adherence to international standards and focus on financial stability”.
However, the FSB stated that “Singapore needs to clarify responsibility within Monetary Authority of Singapore for the calibration and implementation of its macroprudential policies”, and should “continue to enhance the risk assessment framework in terms of process, use of modelling tools and ongoing work to assess systemic risks from fintech”.
On the framework for resolution of financial institutions, FSB said Singapore should “continue working to refine, expand and operationalise resolution planning”.
This included continuing resolution planning on “domestic systemically important banks as well as for insurance companies and financial market infrastructures that could be systemic in failure”.
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