LONDON, Nov 14 (Reuters) - The job of fixing flaws that led to the 2007-09 financial crisis is largely done and the focus will now turn to spotting new risks and rebuilding trust among regulators, the Financial Stability Board said on Friday.
The FSB, a task force for the Group of 20 economies (G20), has coordinated new rules that force banks to hold more capital after many were bailed out by taxpayers in the crisis.
"The G20 has worked intensively over the past six years to correct the fault lines that led to the global financial crisis," FSB Chairman Mark Carney said in a letter to G20 leaders meeting in Brisbane, Australia.
While the job is "substantially complete", further work remains in order to build a fully resilient system, said Carney, who is also governor of the Bank of England.
Earlier this week, the FSB unveiled the last major piece of crisis reforms, a proposed requirement for banks to hold equity and bonds equivalent to 16-20 percent of their risk-weighted assets to shield taxpayers in a collapse.
The FSB has already finalised tougher standards for financial derivatives like credit default swaps but Carney said implementation of the new rules is uneven and behind schedule.
Carney, whose term at the helm of the FSB was extended this week, said the next phase for the FSB was to focus on new and constantly evolving risks from "shadow banking" or institutions that deal in credit outside traditional banking.
The FSB would also work to rebuild trust among regulators to stop countries fragmenting global markets by taking unilateral steps to shield their taxpayers from a failing foreign bank, Carney said.
yahoo.com
The FSB, a task force for the Group of 20 economies (G20), has coordinated new rules that force banks to hold more capital after many were bailed out by taxpayers in the crisis.
"The G20 has worked intensively over the past six years to correct the fault lines that led to the global financial crisis," FSB Chairman Mark Carney said in a letter to G20 leaders meeting in Brisbane, Australia.
While the job is "substantially complete", further work remains in order to build a fully resilient system, said Carney, who is also governor of the Bank of England.
Earlier this week, the FSB unveiled the last major piece of crisis reforms, a proposed requirement for banks to hold equity and bonds equivalent to 16-20 percent of their risk-weighted assets to shield taxpayers in a collapse.
The FSB has already finalised tougher standards for financial derivatives like credit default swaps but Carney said implementation of the new rules is uneven and behind schedule.
Carney, whose term at the helm of the FSB was extended this week, said the next phase for the FSB was to focus on new and constantly evolving risks from "shadow banking" or institutions that deal in credit outside traditional banking.
The FSB would also work to rebuild trust among regulators to stop countries fragmenting global markets by taking unilateral steps to shield their taxpayers from a failing foreign bank, Carney said.
yahoo.com
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