> Financial Stability Forum
Transparency: Encourage firms to boost risk disclosures.
Regulatory cooperation: The FSF and IMF will intensify their cooperation on financial stability.
> Basel Committee On Banking Supervision
Capital: Raise capital requirements for complex structured products, trading book exposures and banks’ ABCP liquidity facilities.
Liquidity: Develop guidance on the management and supervision of liquidity.
Transparency: Issue guidance to strengthen disclosure of securitization exposures, off-balance sheet vehicles, ABCP conduits and valuations.
Risk management: Issue guidance for supervisory review in areas such as risk management, stress testing and securitization.
Valuation: Will issue guidance to enhance the supervisory assessment of banks’ valuation processes.
> International Organization Of Securities Commissions
Capital: Boost capital requirements for credit exposures in firms’ trading books.
Credit ratings: Will revise its code of conduct for credit rating agencies by mid-2008.
> U.S. Treasury
Lending: Create a new federal commission to oversee mortgage origination.
Capital: Make the Federal Reserve a market stability regulator and create a single prudential regulator.
Liquidity: Clarify liquidity provisioning by the Fed.
> Institute Of International Finance
Lending: Ensure robust due diligence standards.
Liquidity: Consider the risk of overdependence on any form of funding.
Transparency: Strengthen SIV disclosure.
Risk management: Improve risk management, strengthen standards in governance, technical issues and stress testing.
Valuation: Strengthen valuation processes and enhance fair-value accounting in low liquidity markets.
Credit ratings: Need for independent review of internal governance and ratings models, and increased transparency on structured product risks.
Incentives: Develop principles to align compensation with long-term performance.
A smorgasbord of reform ideas
- By: James Langton
- April 28, 2008 April 28, 2008
- 14:11