Bank of Canada says economy no excuse to delay financial reforms

OTTAWA (Reuters) - A senior Bank of Canada official urged global policymakers on Tuesday to push ahead with financial system reforms despite economic weakness, saying financial stability is an important precondition for growth.

Financial Stability Board warns of risk-taking due to low interest rates

Low interest rates have led investors to start taking risks that could create the conditions for a new crisis, according to the world's leading financial watchdog.

In a strong warning to regulators around the world, the Financial Stability Board said that investors were taking "non-standard" risks as they search for assets that offer them an attractive yield.

'Vulnerabilities' in global financial system: oversight body

ROME — The Financial Stability Board (FSB) on Tuesday warned of "vulnerabilities" in the global financial system including "pockets of weakness" in banks and higher risk-taking because of low interest rates.

The FSB also urged governments to take "immediate, concrete steps" to implement commitments on reforming the market for derivatives -- complex financial products seen as one of the factors in the global financial crisis.

International Reviewers Few Non-Bank Structured Credit Disclosures

Countries still seem to differ in terms of whether they apply the same structured credit risk exposure rules to banks and to other types of financial institutions, according to officials at the Financial Stability Board (FSB).

The Group of 20 (G20) developed countries set up the FSB, Basel, Switzerland, to help develop strategies for increasing the stability of the world financial system.

Financial Stability Board: Italy's Banks May Need To Bolster Capital Base

ROME (Dow Jones)--Italian banks may need to bolster their equity and authorities may need to make sure they do so without triggering a credit crunch, the Financial Stability Board said in its peer review of Italy published late Monday.

"Further strengthening the capital base of the banking sector, without undermining the supply of credit to the economy, may require the authorities' attention going forward," said the FSB, a global body presided over by Bank of Italy Governor Mario Draghi.

Financial Regulatory Reforms to be Discussed at FSB Seoul Plenary

A plenary session of the Financial Stability Board, or FSB, will be held in Seoul next Wednesday to discuss financial regulatory reforms ahead of next month's G20 Seoul Summit.

Key agenda items on the table include strengthening supervision of global SIFI's or Systemically Important Financial Institutions and enhancing bank capital regulation.

The delegates will also discuss the establishment of an outreach program to encourage non-member countries to participate in the FSB.

The results of the meeting will then be reported to the G20 leaders at the Seoul summit, where the issues are expected to be resolved.