PASLA: Regulators still in the dark on shadow banking
02 March 2016 Singapore
Image: Shutterstock
National regulators are beginning to introduce rules to tackle shadow banking but their priorities and timing differ, according to Paul Landless, partner at Clifford Chance.
“Not everyone can agree on what shadow banking is,” explained Landless during a panel discussion at the PASLA/RMA Conference on Asian Securities Lending in Singapore.
The G20’s Financial Stability Board (FSB) has chosen to focus on financial stability risks.
“The key issue is whether regulators differ and expand on the FSB's aims and policy approaches and if the debate becomes politically charged,” added Landless.
The EU has opted for a blanket approach to its reporting requirements and will request information from all financial entities.
“The Europeans are speeding ahead [of other regions]. They have a much better idea of who needs to be reporting what.”
The EU’s Securities Financing Transactions Regulation (SFTR), which came into effect in February, requires the reporting for all transactions, excluding those concluded with central banks, to trade repositories.
Reporting requirements will be implemented at a regional level between 12 to 21 months after the SFTR came into force.
“Not everyone can agree on what shadow banking is,” explained Landless during a panel discussion at the PASLA/RMA Conference on Asian Securities Lending in Singapore.
The G20’s Financial Stability Board (FSB) has chosen to focus on financial stability risks.
“The key issue is whether regulators differ and expand on the FSB's aims and policy approaches and if the debate becomes politically charged,” added Landless.
The EU has opted for a blanket approach to its reporting requirements and will request information from all financial entities.
“The Europeans are speeding ahead [of other regions]. They have a much better idea of who needs to be reporting what.”
The EU’s Securities Financing Transactions Regulation (SFTR), which came into effect in February, requires the reporting for all transactions, excluding those concluded with central banks, to trade repositories.
Reporting requirements will be implemented at a regional level between 12 to 21 months after the SFTR came into force.
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