On 8 February 2022, the Basel Committee on Banking Supervision (Basel Committee) published a speech by its Chair, Pablo Hernández de Cos, entitled ‘Implementing Basel III’. Key points in the speech include: An open global financial system requires a set of global minimum and consistent prudential standards. A failure to achieve this could result in … Continue Reading
On January 27, 2022, the United States Court of Appeals for the Second Circuit acquitted two former traders, Matthew Connolly and Gavin Campbell Black, who had been convicted by a jury for wire fraud as well as conspiracy to commit bank and wire fraud in a scheme to manipulate the London Interbank Offered Rate (“LIBOR”). … Continue Reading
On 10 December 2021, the Council of the Islamic Financial Services Board (IFSB) adopted two new standards: IFSB-23: Revised Capital Adequacy Standard for Institutions offering Islamic Financial Services (IIFS). IFSB-23 was developed to align the IFSB’s guidance on capital adequacy for the banking sector with the latest updates to global capital standards, particularly those issued … Continue Reading
On 16 December 2021, the Financial Stability Board (FSB) published the Global Monitoring Report on Non-Bank Financial Intermediation 2021. The report presents the results of the FSB’s annual monitoring exercise to assess global trends and risks in non-bank financial intermediation (NBFI). In contrast to the trend over the past decade, the NBFI sector grew less … Continue Reading
On 13 December 2021, the Financial Stability Board (FSB) published a paper on the execution of bail-in. Bail-in is at the core of resolution strategies for global systemically important banks (G-SIBs). Set out in the Key Attributes of Effective Resolution Regimes for Financial Institutions, it is an important tool enabling an orderly resolution that minimises … Continue Reading
On 7 December 2021, the Financial Stability Board (FSB) published its 2021 Resolution Report. The Resolution Report takes stock of the progress made in implementing the FSB resolution policies and enhancing resolvability across the banking, financial market infrastructure, and insurance sectors. It also sets out the FSB’s priorities in the resolution area going forward. Looking … Continue Reading
On 23 November 2021, the Financial Stability Board (FSB) published the 2021 list of global systematically important banks (G-SIBs) using end-2020 data and an assessment methodology designed by the Basel Committee on Banking Supervision (Basel Committee). FSB member authorities apply the following requirements to G-SIBs: Higher capital buffer. The G-SIBs have been allocated to buckets … Continue Reading
On 16 November 2021, the Basel Committee on Banking Supervision (BCBS) issued a public consultative document titled Principles for the effective management and supervision of climate-related financial risks. The BCBS reports that a review of the existing Basel Framework has concluded that while the ‘Core Principles for Effective Banking Supervision’ (Core Principles) and the ‘Supervisory … Continue Reading
On 1 November 2021, the Financial Stability Board (FSB) published its progress report, ‘Enhancing the Resilience of Non-Bank Financial Intermediation’, which was delivered to G20 Leaders ahead of their Summit last weekend. This report details the progress over the past year and the planned work set out by the FSB alongside, standard-setting bodies and other … Continue Reading
On 18 October 2021, the Financial Stability Board (FSB) published a speech by its chair, Randal K Quarles, titled ‘Financial Stability and Coordination in Times of Crisis’. In his speech, Mr Quarles focuses on four areas: Reacting and responding to crisis: Leveraging cooperation to ensure stability and contain spill- During the decade between the global … Continue Reading
On 13 October 2021, the Financial Stability Board (FSB) published a press release announcing the publication of its first consolidated progress report covering the progress made during the first year of the G20’s Roadmap for Enhancing Cross-border Payments. The report highlights that most of the milestones set by the Roadmap for 2021 have been completed … Continue Reading
On 30 July 2021, the Basel Committee on Banking Supervision (Basel Committee) and the World Bank (WB) published a report on an earlier joint global survey that focussed on proportionality in bank regulation and supervision. The survey involved 90 authorities, with a broad distribution across geographical regions and income groups. The concept of proportionality is … Continue Reading
On June 30, 2021, President Biden signed S. J. Res. 15, which had been passed by the U.S. Senate and House of Representatives, pursuant to the Congressional Review Act (the “CRA”), to nullify the Trump Administration’s “True Lender” final rule (the “True Lender Rule”). Under the CRA, the US Congress has a limited period of … Continue Reading
Global and US financial services regulators are increasing their warnings on the impending end to the use of the London Interbank Offering Rate (LIBOR) as a reference rate in financial contracts and the risk to the global financial system if there is inadequate preparation by financial institutions. Most LIBOR settings are ending this year, with … Continue Reading
On 7 June 2021, the Basel Committee on Banking Supervision (Basel Committee) issued a press release following its meeting on 4 June 2021. During this meeting the Basel Committee took stock of COVID-19 risks to the banking system and discussed policy and supervisory initiatives. In terms of crypto-assets the press release notes that the Basel … Continue Reading
On 31 May 2021, the Financial Stability Board (FSB) issued a consultative document regarding targets for addressing the four challenges of cross-border payments – cost, speed, transparency and access. The FSB explains that these targets are a foundational step in the G20 Roadmap for Enhancing Cross-border Payments. The consultative document: (i) describes the principles, and … Continue Reading
The U.S. Senate and House of Representatives have jointly proposed overturning the Trump Administration’s “True Lender” final rule (the “True Lender Rule”), as published by the Office of the Comptroller of the Currency (the “OCC”) on October 30, 2020 and effective December 29, 2020. The Congressional Review Act (the “CRA”) gives Congress a limited period … Continue Reading
On April 21, 2021, Wyoming Governor Mark Gordon signed Bill 38 into law allowing Wyoming to recognize decentralized autonomous organizations (DAOs) as limited liability companies. The bill was sponsored by Wyoming’s Select Committee on Blockchain, Financial Technology and Digital Innovation Technology and takes effect July 1, 2021. Generally, a DAO is an organization controlled by … Continue Reading
Following up on our past posts on the transition away from the use of the London Interbank Offering Rate (“LIBOR”) as a reference rate, recently, the Board of Governors of the Federal Reserve System (FRB) issued a letter setting forth guidance for FRB examiners to assist in their assessment of the progress of FRB-supervised firms … Continue Reading
On 16 April 2021, the Basel Committee on Banking Supervision (Basel Committee) published its work programme for 2021-22. The work programme focuses on three key themes: COVID-19 resilience and recovery. This includes ongoing monitoring and assessment of risks and vulnerabilities to the global banking system. Horizon scanning and mitigation of medium-term risks and trends. This … Continue Reading
The National Defense Authorization Act became law on January 1, 2021, after the U.S. Congress overrode a presidential veto. Division F of the Act is the “Anti-Money Laundering Act of 2020” (AMLA). In her latest The New York Law Journal column, “ AML Act of 2020: Topics of interest for international banks,” Kathleen Scott, Senior … Continue Reading
The Office of the Comptroller of the Currency (OCC) granted crypto-focused Protego Trust Company, a Washington state trust company, conditional approval to convert to a national trust bank earlier this month, marking only the second time that a federal bank charter has been approved for a crypto firm – and the first since the January … Continue Reading
In 2020, several federal regulatory changes affected banking organizations, such as the finalization of the long-awaited Federal Reserve Board “control” regulations and the revision of the “covered funds” prong of the Volcker Rule. But, what is ahead for 2021 in the regulatory sphere for banking organizations? In her latest New York Law Journal column, “International … Continue Reading
On December 18, 2020, the US Department of the Treasury (Office of the Comptroller of the Currency), Federal Reserve Board and Federal Deposit Insurance Corporation (FDIC) jointly announced a 53-page proposed rule that would require banks to notify their regulators within 36 hours of a “computer-security incident” that rises to the level of a “notification … Continue Reading
