G20 Roadmap Towards Strengthened Oversight And Regulation Of Shadow Banking

November 2013

  • International Organization of Securities Commissions (IOSCO) will contribute its analysis of the global hedge fund sector to the Financial Stability Board (FSB) within the scope of the FSB's regular shadow banking monitoring exercise so as to enhance transparency and risk monitoring.

  • FSB to publish results of its third shadow banking monitoring exercise.

2013 4Q

  • FSB to conduct its comprehensive quantitative impact assessment on haircut proposals for non-centrally cleared securities financing transactions.

End of 2013

  • Basel Committee on Banking Supervision (BCBS) to develop a supervisory framework for controlling large exposures (including exposures to shadow banking entities).

March 2014

  • BCBS to develop internationally consistent, risk sensitive rules for capital treatment for banks’ investments in equity of funds (including funds engaged in shadow banking).

2014 2Q

  • FSB to complete recommendations on minimum standards on methodologies for calculating haircuts on non-centrally cleared securities financing transactions and for the proposed framework of numerical haircut floors.

2014

  • FSB to develop information-sharing process within its policy frame­work for other shadow banking entities by March 2014, start information-sharing thereafter, and report its progress to the G20 FM and CBG in late 2014.

  • IOSCO to launch peer review on member states’ implementation of its recommendations regarding money market funds (2012) and report its progress to the G20 in late 2014.

  • IOSCO to launch peer review on member states’ implementation of incentive alignment regimes (including risk retention requirements) and report its progress to the G20 in late 2014.

  • BCBS to BCBS to provide update on progress made in implementing policy reforms to mitigate risks in banks’ interactions with shadow banking entities.

End of 2014

  • FSB data experts group to propose standards and processes for global data collection and aggregation regarding repo and securities lending markets.

2015

  • BCBS to report on the progress made in implementing the supervisory framework for controlling large exposures and rules for capital treatment for banks’ investment in funds.

  • FSB to launch a peer review regarding member states’ implementation of its policy framework for other shadow banking entities. Based on the findings, the FSB should evaluate the case for developing further policy recommendations for relevant shadow banking entities and report the results to G20 FM and CBG in 2015.