FSB seeks to strengthen regulation of shadow banking

Shadow banking under the microscope post-pandemic: FSB The Financial Stability Board (FSB) Monday published an initial set of policy recommendations to strengthen oversight and regulation of the shadow banking system. The global oversight group has been concerned about the lack of regulation of the so-called “shadow banking system” since the financial crisis. The primary worry is that shadow banking, which the FSB describes as credit intermediation involving entities outside the regular banking system, can represent an unknown systemic risk. LIBOR, innovation and shadow banking top FSB agenda Related news James Langton “Like banks, a leveraged and maturity-transforming shadow banking system can be vulnerable to ‘runs’ and generate contagion risk, thereby amplifying systemic risk,” the FSB says. “Such activity, if unattended, can also heighten procyclicality by accelerating credit supply and asset price increases during surges in confidence, while making precipitate falls in asset prices and credit more likely by creating credit channels vulnerable to sudden losses of confidence.” It notes that these risks became evident during the crisis with the disruption of asset-backed commercial paper (ABCP) markets; the failure of the originate-to-distribute model employing structured investment vehicles (SIVs) and conduits; runs on money market funds; and a sudden reappraisal of the terms on which securities lending and repos were conducted. “But whereas banks are subject to a well-developed system of prudential regulation and other safeguards, the shadow banking system is typically subject to less stringent, or no, oversight arrangements,” it notes. The FSB says that the objective of its work is to ensure that shadow banking is subject to appropriate oversight and regulation to address bank-like risks to financial stability, without curtailing sustainable non-bank financing models. According to the FSB, shadow banking grew rapidly before the crisis, from an estimated $26 trillion in 2002 to $62 trillion in 2007. It has continued to increase since then, although at a slower pace, it says, to $67 trillion at the end of 2011. And, while data on the shadow banking sector is improving, it says that “further improvements are needed in jurisdictions that still lack granular data to adequately capture the magnitude and nature of risks in the shadow banking system.” The FSB’s recommendations focus on five specific areas where it believes policies are needed to mitigate the potential systemic risks, in order to: to mitigate the spill-over effect between the regular banking system and the shadow banking system; reduce the susceptibility of money market funds to ‘runs’; mitigate systemic risks posed by other entities in addition to money market funds; align the incentives associated with securitization; and, dampen risks and pro-cyclical incentives associated with secured financing contracts and securities lending that may exacerbate funding strains. To that end, the group published a trio of reports today. One report sets out its overall approach to shadow banking issues and provides an overview of its recommendations. A second report proposes a high-level policy framework; and, the third report makes 13 recommendations to enhance transparency, strengthen regulation of securities financing transactions, and improve market structure. It also notes that the Basel Committee on Banking Supervision (BCBS) will develop policy recommendations for mitigating the spill-over between the traditional banking world and the shadow banks by mid-2013. The International Organization of Securities Commissions (IOSCO) has established its final policy recommendations to deal with money market funds and securitization risks. Comments on the FSB’s reports are due by January 14, 2013. Keywords Shadow bankingCompanies Financial Stability Board Facebook LinkedIn Twitter Share this article and your comments with peers on social media Prior to the pandemic, shadow banking was surging read more

Zoogma Blends at Brooklyn Bowl On September 5, 2012

first_imgBy Sam RosenbergWednesday night at Brooklyn Bowl (also known as “my home away from home”) had a few surprises for this first-time Zoogma viewer; the night was all about the special blend of live music, synths and samples.  First, to warm up the crowd, D.V.S* threw down an intimate DJ set.  All his beats are homemade with the goal of making those beats and melodies revolve around his live guitar once on stage.  This guy has a passion for what he is doing and it shows!Then Zoogma took to the stage.  Zoogma’s jamtronica music mixes youthful high energy, tight transitions, synthesizers, and driving live instruments molded around an electronic sound.  Brock Bowling (guitar, live sequencing), Matt Harris (drums, live sequencing), Justin Hasting (guitar, synthesizer), and Ryan Nall (bass, synthesizer) brought out loyal fans and delivered an entertaining and engaging musical and visual experience.The first part of the set was filled with skillful mild peaks and smooth shifts.  While playing as a unit, each member individually transitioned back and forth from their synth or laptop to live instruments within songs.  They made these switches look easy; much of this attributed to the superbly solid drumming of Matt Harris.  Not only did he stay steady – a tough job with such layered music – he was having a great time doing it!The textures and layers of their songs are a defining quality of the band hailing fromOxford,Mississippi.  Subtly littered with mostly female vocal samples, the tunes were broken up nicely without overpowering the heavy instrumental bass-lead dance party.  The samples were a great way to add variety to the tunes without over-extending the tempo in either direction; it was never too fast or too slow.As the band (and crowd) got hot, so did the peaks; getting steadily heavier as the set progressed; making it clear they knew how to keep their fans into it without being exaggerated.  The comfortable crowd was really into it, and one could not help but head bob (though some danced full out balls-to-the-wall).  Toward the end of the set, they announced a new tune; greeted with big cheers.  One notable difference between this new material and other stuff they played was their use of the vocal sample.  For this song, the sample was at the core, and the other instruments used around it added to the quality.  The song was out of place in a set built around special blends and subtlety but was by no means a disappointment to hear.While fun to hear, this band is a visual experience; they need a good light show to function at their highest level of entertainment.  The lights on stage, some from the house and others brought in by the band, were more than adequate and totally enhanced the show.  It would be worth checking them out during the day to see if they have the same powerful pull.  They are set to perform at The Catskill Chill this weekend and I highly recommend catching their set.  These guys have an energetic and infectious youthful talent; couple that with the smart management at MCP Presents, they have a huge chance of becoming a band worth seeing on the regular.  I am certainly looking forward to seeing what they bring next time!Setlist:Jerry DiezelPillowBlocksRock itMr. LimbicStarry eyed (Ellie Gouding Remix)Incredible MachineSaturateMioMirageCheck out our pictures by Corey Skonberg:last_img read more

Back to school for Shuttlelift

first_imgRichard Huston, Shuttlelift CustomerCare service technician said: “We developed these classes to better train and empower the field service technicians, enabling them to be even more self-sufficient while on location.”An out-of-service machine means costly downtime for the facility. The longer a facility has to wait for assistance, the longer its operation is at a standstill; not only is that an unwelcome development for customers and employees, it’s a heavy hit to the business’s bottom line.Huston noted that it is unusual for field service technicians to have factory-calibre knowledge of complex electrical systems. That’s why developing this knowledge base among Shuttlelift’s global corps of technicians is a critical element of the Service School; which is also focused on the importance of Shuttlelift’s inspection programme. The service technicians who attended this earlier school sessions travelled from as far away as Malaysia, Japan and Europe, as well as from throughout North America. www.shuttlelift.comlast_img read more

Dunleavy Requests Federal Assistance For Earthquake Relief

first_imgDuring the conference Governor Dunleavy said it’s unclear whether the federal government’s partial shutdown will affect how soon the state gets a response to the request. The declaration would authorize a full suite of federal assistance for the State of Alaska as a result of the major earthquake that occurred on November 30, 2018. FacebookTwitterEmailPrintFriendly分享Governor Mike Dunleavy in a press conference yesterday made the announcement that he is requesting a Presidential Major Disaster Declaration. Governor Dunleavy: “The November 30th earthquake caused significant damage – shuttered schools, destroyed homes, displaced hundreds of Alaskans – and we have determined that effective recovery efforts are beyond the capabilities of the State and affected local governments. In an effort to ensure Alaskans have every opportunity to recover, we have formally requested a Presidential Major Disaster Declaration under the federal Stafford Act, which opens the door to an assortment of federal assistance programs to get Alaska back up on its feet faster.”center_img The Presidential Major Disaster Declaration request can be found here. Initial damage assessments and costs for needs such as temporary housing were around $100 million, according to figures provided by the state.last_img read more