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Gfma : News on the global financial markets

mercredi 21 décembre 2011 GFMA
  Regulatory Roundup   
   

Global regulatory efforts are expected to boost shadow banks
Efforts by global regulators to improve the stability of the financial system could inadvertently help the shadow-banking system, experts said. Hedge funds, private-equity funds and other players in shadow banking are expected to acquire assets that banks must sell to comply with regulations. "The growth of the shadow-banking system is a logical consequence," said Konrad Becker, an analyst at Merck Finck. Reuters(20 Dec.)

BoE and FSA warn about drawbacks of risk-prevention tools
The Bank of England and the UK Financial Services Authority released a paper that highlights challenges faced by regulators as they strive to prevent a repeat of the 2008 financial crisis. The paper explains drawbacks of tools that the central bank might use to keep excessive risk from building up in the financial system. The Wall Street Journal(20 Dec.), Bloomberg(20 Dec.)

Commentary: G-SIFIs expect to benefit from designation
The Financial Stability Board recently identified 29 banks as global systemically important financial institutions, which essentially means they are too big to fail, columnists Rob Cox and Peter Thal Larsen write. "That puts smaller rivals at a disadvantage," they note. "It's a race to the top, but not in the way regulators envisioned." The New York Times (tiered subscription model)/Reuters Breakingviews(20 Dec.)

  • Other News

Debate over Basel III continues
The New York Times (tiered subscription model) (20 Dec.)

Banks are expected to flock to ECB's cheap, 3-year loans
Bloomberg (21 Dec.)

Sweden drops interest rate for the first time since 2009