Non-Banks Need To Be More Transparent About Their Leveraged Loans and Other High-Yield Risks

Forbes

About $1.4 trillion in institutional leveraged loans, or loans purchased by institutional investors other than syndicate banks, was estimated to be outstanding globally as of October 2018. A big challenge, however, is that certain data and statistics (particularly those regarding the end-investors’ holding of leveraged loans) are not readily available; hence the FSB estimates based on a range of public and regulatory data. Read more

Market Participants and Regulators Should Be More Vigilant Of Non-Banks

Forbes

A key theme of the Financial Stability Board’s eighth annual global monitoring report was summarized by Klaas Knot, Chair of the FSB Standing Committee on Assessment of Vulnerabilities, “Non-banks play a growing role in the financial system, and their share of the financial system is the largest on record. They are becoming important players in areas where banks traditionally have played dominant roles.”

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Senator Tillis Should Care More About Americans Than Big Banks

Forbes

If anyone should be interested in big banks’ safety and soundness, it should be Senator Tillis.  The GSIB surcharge is needed to protect Americans, and U.S. big banks are not hurt by GSIB. Americans cannot contribute to Tillis’ campaign like banks can, but we are not children of a lesser God.

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Euro Credit Accelerates While U.S. Dollar Credit Slows

Forbes

Credit to non-bank borrowers, especially those in emerging and developing economies, continues a five-year trend of divergence between Euro and U.S. dollar credit extension.   BIS global liquidity indicators at end-September 2018 released today by The Bank for International Settlements showed that after slowing in the first half of 2018, Euro-denominated credit to non-bank borrowers outside the euro area rose by 9% year on year.

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Fintech Is Revolutionizing Fixed Income Markets

Forbes

Fintech companies are increasingly turning to a wide array of products that help automate transactions in capital markets trading, retail banking, fund raising, investment and wealth management, and money transfers. More than anything in the last few years, fintech has changed the dynamics in banking and how customers and clients can be served.

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IOSCO Recomends Best Practices For Auditors

Forbes

I am very pleased that today the International Organization of Securities Commissions (IOSCO) published important guidance, Report on Good Practices for Audit Committees in Supporting Audit Quality. These recommendations from IOSCO, the leading international policy forum for securities regulators and the global standard setter for securities regulation, are based on good practices for audit committees of listed companies in supporting external audit quality.

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Maxine Waters Intends To Use Her Gavel

Forbes

Representative Maxine Waters, the new Chair of the House Financial Services Committee, promised to put consumer and investor protection as her top priority.  She is happy to work with her colleagues across the aisle if they will help her protect consumers. But if they don’t, she has the gavel.

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Basel Committee Finalizes Long-Awaited Market Risk Framework

Forbes

The Group of Central Bank Governors and Heads of Supervision (GHOS) approved today the Basel Committee for Banking Supervision’s revisions to the market risk framework.  The Basel Committee (BCBS) recommended that the newly approved market risk framework take effect as of 1 January 2022.  The BCBS also published a description of the background, objectives and overall impact of the market risk framework in an explanatory noteRead more

Central Banks Are Not Issuing Digital Currency Soon

Forbes

The majority of central banks around the world are considering issuing central bank digital currencies (CBDC), but not in the short term.  In a Bank for International Settlement report, Proceeding with caution- a survey on central bank digital currency,  released today, survey results show that, “although a majority of central banks are researching CBDCs, this work is primarily conceptual and only a few intend to issue a CBDC in the short to medium term.” Over 85% of central banks see themselves as either somewhat unlikely or very unlikely to issue any type of CBDC. Read more

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