SEOUL (MNI) – The Financial Stability Board will present to the G20
a set of proposals of how to deal with systematically important
financial institutions (SIFI), FSB Head Mario Draghi said Wednesday.
The proposals consist of four key pillars, including the creation
of effective resolution regimes, supplementary prudential requirements,
increased supervision and much stronger infrastructure for derivatives,
he said.
While new requirements should apply to all banks considered too big
to fail, “there is a category of globally actives SIFIs. It is to this
sort of institution that our work is initially geared,” Draghi said.
The FSB has also discussed the role of rating agencies and
recommends to “reduce the mechanical reliance on ratings,” he noted.
Diminishing this reliance “will take time — time for parties that
currently use ratings to develop their own credit assessments,” Draghi
said.
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