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Bailey McCann,Opalesque New York: As part of the effort by all central banks to more closely monitor systemic risk, a variety of regulations have been put forth in the years since the 2008 financial crisis. In the US, the Dodd-Frank Act serves as the platform, in the UK the Financial Services Authority (FSA) has restructured in order to be more proactive. Now, the Financial Stability Board (FSB) part of the G-20 group of countries has been tasked with creating a group of regulations designed to monitor the systemic risk posed by activities commonly known as 'shadow banking.’
Shadow banking is a catch-all term for securities lending, repo and money market funds all told a $60tn market. The goal of these regulations is to provide more data around risk and increase overall transparency. Much like other bodies that are authorities but not regulators per se such as the European Securities Market Authority (ESMA), the FSB will draft recommendations that the G-20 countries can then extrapolate out into formal regulations.
A new report from Finadium, a US-based financial markets research and consulting firm highlights regulatory concepts currently being discussed as well as the countries and organizations involved in the discussion. The report also compares the activities of th...................... To view our full article Click here
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