ICFR Weekly - 18 January 2012

Regulatory News

BIS Claims Stability Benefits of Reform Outweigh Costs - 12 January 2012 
The Bank for International Settlements (BIS) has released a collection of 10 papers from a conference held in November 2011 on the relationship between financial regulation and growth, equity and stability… Read more

CFTC Commissioner Suggests Volcker Rethink Needed - 11 January 2012
The Commodity Futures Trading Commission (CFTC) met to vote on, amongst other items, a proposed rule to implement the so-called Volcker Rule. However, in a statement the CFTC’s Commissioner O’Malia argued that the rule is too complex…Read more

FSB to Extend SIFI Framework - 11 January 2012
At the Financial Stability Board’s (FSB) first plenary meeting of 2012, the Board has said that the framework for systemically important financial institutions (SIFIs) will be extended to include domestic systemically important banks, and globally systemically important insurance companies, as well as other types of financial institution…Read more

ECB Suggests Risk-Hedging Can Increase Risk-Taking - 10 January 2012
In this working paper from the European Central Bank, the authors argue that despite an object of much hedging being to share risk, the effect can in fact be an increase in risk-taking, as negative news about the hedge creates an incentive problem for the seller... Read more

IMF Examines System-Wide Liquidity Stress Tests - 10 January 2012
Liquidity risk has gained much attention in financial regulation recently, with the Basel III rules including two liquidity standards: the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR)... Read more

IMF Assesses Financial Stability Report Progress - 9 January 2012
In this new working paper from economists at the International Monetary Fund (IMF), we see an analysis of financial stability reports, their usefulness, and the scope for improvement... Read more

Basel Reiterates Commitment to Liquidity Rules - 9 January 2012
The Group of Governors and Heads of Supervision (GHOS) of the Basel Committee on Banking Supervision (BCBS) have stated that the Liquidity Coverage Ratio (LCR) is to be introduced as a minimum standard in 2015, in line with the original implementation plans... Read more

EBA Issues Guidelines on Advanced Measurement of Capital - 6 January 2012
The European Banking Authority (EBA) has published guidelines on the use of Advanced Measurement Approaches (AMA) for determining regulatory capital charges for operational risk... Read more

Key Dates

Volcker Rule: Prohibitions and Restrictions on Proprietary Trading - 13 February 2012
The deadline for responding to the US consultation on the Volcker rule has been extended for one month, to 13 February 2012, in response to industry concerns that parallel rules from the Commodity Futures Trading Commission (CFTC) have not yet been published... Read more

Other Regulatory Updates

ICFR Conference: The Optimal Relationship between the Regulator and the Regulated - 25 April 2012
The core themes of this conference will include: mechanisms to ensure a plurality of views in the regulatory process, reforms to the institutional structure of regulation, the issue of revolving doors, as well as the relationship between capture and the political cycle.... Read more

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