FSB reviewing post-crisis reforms

Global policymakers are launching a review of post-crisis reforms designed to curb the risk of taxpayer bailouts for financial firms deemed too big to fail.

The review, which is being carried out by a working group of the Financial Stability Board (FSB), aims to assess whether reforms that were adopted in response to the crisis are reducing the moral hazard associated with systemically important banks. It will also look at how these reforms are affecting the overall financial system.

The list of reforms includes designating certain banks as systemically important and subjecting them to higher capital requirements and closer supervision; measures to limit certain bank activities (such as the Volcker Rule); and the introduction of bail-in and bank resolution regimes.

As part of the assessment, the FSB is seeking feedback from the financial industry, consumer groups, academics, think tanks and others, detailing their views on policymakers’ efforts in this area since the crisis.

The deadline for submissions is June 21. The FSB said it will also be holding workshops to solicit additional feedback.

The FSB is planning to issue a draft report for public consultation in June 2020, and aims to publish a final report late next year.

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