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FSB makes key appointments at Cape Town meeting
28 February 2017
Global regulator also planning new framework for evaluating effects of reforms
South African Reserve Bank governor Lesetja Kganyago and
Norman Chan, the chief executive of the Hong Kong Monetary
Authority, have been handed new roles at the Financial
Stability Board (FSB).
Kganyago has been named chair of the FSB’s
committee on standards implementation while Chan, who has
led HKMA since 2009, will head up
the regulator's supervisory and regulatory cooperation
They replace Ravi Menon, managing director at Singapore's
central bank, and Daniel K Tarullo who recently resigned from
the US Federal Reserve.
Both appointments were announced this week as FSB members
met in Cape Town to discuss post-crisis reforms.
The international body of regulators is currently reviewing
shadow banking risks, including securities lending, and
monitoring the effects of legislation impacting OTC
Interdependencies between central counterparties (CCPs),
major clearing members and financial service providers and the
resulting systemic implications is another major focus
This week FSB officials announced that a "comprehensive
framework" for evaluating the post-implementation effects of
the reforms will be delivered by July.
In a statement, the FSB added that uncertainty over the path
of future interest rates may pose significant, but varied,
risks to banks and institutional investors.
It noted that shifts by insurers and pension funds into
higher-risk assets raise concerns about losses and portfolio
rebalancing when the credit cycle turns.