Bloomberg News

Global Regulators to Review Implementation of G-20 Agreements

October 18, 2011

Oct. 18 (Bloomberg) -- Global regulators will review annually how well financial regulation changes agreed to by the Group of 20 countries are being applied, the Financial Stability Board said.

“Priority areas for monitoring” include an overhaul of minimum capital requirements for lenders agreed on last year by the Basel Committee on Banking Supervision, and rules for banker pay, the FSB said. Other priorities include putting in place measures dealing with so-called shadow banks and trading in over-the-counter derivatives.

The G-20 has tasked the FSB with coordinating an overhaul of rules for the global financial system to prevent a repeat of the financial crisis that followed the collapse of Lehman Brothers Holdings Inc. Lawmakers on both sides of the Atlantic have said that they will be vigilant in checking that rules are implemented consistently.

Reports on “implementation progress in each of these areas will be published at least once a year,” the FSB said. The group plans to publish “country by country” information on steps that have been taken to put the measures in place.

Andrea Enria, the chairman of the European Banking Authority said last week that it is “essential” that the updated capital requirements for banks, known as Basel III, are applied in a similar way.

The FSB said earlier this month that some nations are behind schedule in implementing measures to push trading of over-the-counter derivatives onto regulated markets and through clearinghouses, and that EU banks may be disadvantaged by unequal implementation of pay rules.

The FSB brings together regulators, central bankers and finance ministry officials from G-20 countries as well as standard-setting bodies like the Basel committee.

--Editors: Peter Chapman, Christopher Scinta

To contact the reporters on this story: Jim Brunsden in Basel at jbrunsden@bloomberg.net;

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net.


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