The Federal Reserve is considering no longer holding foreign banks that have shrunk US assets to standards faced by domestic banks. The Fed is also considering incremental changes to bank oversight that would "increase transparency, accountability and fairness," Vice Chairman for Supervision Randal Quarles says.
The world economy grew 2.9% last year, the lowest rate since the financial crisis, and a variety of risks are creating uncertainty about the future, International Monetary Fund Managing Director Kristalina Georgieva says. "We have not reached a turning point yet," she says.
Experts told an industry conference that the growth opportunity for US collateralized loan obligations is being driven by Asian investors since they are already well versed in complex products.
Global banks are increasingly tapping markets rather than deposits for short-term funding, according to the Financial Stability Board. Banks in the US, UK and Canada have emerged as the biggest lenders while the biggest borrowers are in France and Japan.
The top 10 central counterparties deposited an average 33% of their default funds at central banks, though some larger CCPs did not use central banks at all.
An International Organization of Securities Commissions report recommends that trading venues and participants timestamp trades in universal time to help facilitate an audit trail of trading events. IOSCO says that with more and faster trading happening across multiple venues and jurisdictions, it is more important than ever to synchronize the clocks participants use.
Regulators are having trouble keeping up with the spread of technology and digital assets, Securities and Exchange Commission member Robert Jackson Jr. says. "In 20 years, we may need to be an agency of 2,000 lawyers and 2,000 programmers," Jackson says.
Bank Negara Malaysia has issued draft recovery and resolution rules requiring financial institutions to identify and put in place a suite of recovery options to restore long-term viability in the event of a system-wide stress event. BNM will give financial institutions 12 months to submit their plans.
The White House says President Donald Trump will nominate Judy Shelton and Christopher Waller to become governors at the Federal Reserve. Shelton is an informal Trump adviser who once advocated a return to the gold standard, while Waller serves as director of research at the Federal Reserve Bank of St. Louis.
These forums are designed for senior industry participants from the buy and sell side involved in trading, structuring, risk, legal and compliance, as well as infrastructure providers, benchmark administrators and vendors to come together and discuss pressing issues and what is to come for the transition from LIBOR to alternative risk-free rates. REGISTER: New York - Feb 12 and London - Feb 26
