The Financial Stability Board (FSB) has published a report giving a further update on its work on financial regulatory factors affecting the supply of long-term investment finance. The report outlines the FSB’s further monitoring work which includes the following:

  • a survey of FSB members to collect inputs on any specific regulatory reform areas that may have had material unintended consequences on the provision of long-term finance and to identify and review any proposals for potential reforms to international financial regulation that could be taken to facilitate the channelling of funds to support long-term investment without compromising prudential and financial stability objectives;
  • continued engagement with practitioners in long-term finance from the private sector to understand and assess whether and how regulatory reforms are affecting the provision of long-term finance for investment, including in the light of recent developments in the market;
  • consultation with FSB Regional Consultative Groups on the potential impact of financial regulation on long-term investment; and
  • work by the FSB Secretariat together with the staff of the International Monetary Fund, World Bank and Organisation for Economic Co-operation and Development to develop a set of key quantitative indicators that summarise the main developments in the provision of long-term finance across different types and regions.

The report states that while the FSB’s monitoring continues to find little tangible evidence or data to suggest that global reforms have had adverse consequences of the provision of long-term finance, the general theme is that time will tell as to the full effect of these reforms.

View Update on financial regulatory factors affecting the supply of long-term investment finance – Report to G20 Finance Ministers and Central Bank Governors, 16 September 2014