The Federal Reserve System published Large Institution Supervision Coordinating Committee (LISCC) supervisory priorities for 2019, which include the following: * Capital planning, regulatory ...reporting, counterparty risk, collateral management, and wholesale credit underwriting. * Internal liquidity stress test assumptions, liquidity position, governance over liquidity data, contingency funding plans, currency risk management, and compliance with liquidity regulation. * Governance and controls, including information technology and cyber-related risks, internal audit, compliance and business conduct, vendor risk management, and risk committee practices. * Recovery and resolution planning, as well as LISCC foreign bank intermediate holding company resolution plans. The OCC's focus areas for Y2019 include: * Cybersecurity and operational resiliency. * Innovation and operational changes as technology advances. * Reliance on third-party service providers to deliver key services. * Commercial and retail credit loan underwriting, concentration risk management, and the allowance for loan and lease losses. * BSA/AML compliance management. * Compliance-related change management to address regulatory requirements. * Internal controls and end-to-end processes necessary for product and service delivery. For its published priorities for 2019, di Florio said, FINRA decided to focus on new issues, as well as issues that had not been discussed in previous priorities statements, including the following: * Online distribution platforms. * Fixed-income markup disclosure. * Regulatory technology. * Sales practice risks, including suitability, senior investors, outside business activities, and private securities transactions. * Operational risks, including supervision of digital assets, business and customer due diligence, and suspicious activity reviews. * Market risks, including best execution, market manipulation, market access, short sales, and short tenders. * Financial risks, including credit risk, funding, and liquidity. ...some weaknesses persist, particularly in areas related to governance and controls. * Banks should be attentive to the heightened risks in the corporate bond and loan markets, particularly the leveraged lending market. * Investment advisors and asset management firms should focus on best execution, advisory fee and expense, cash solicitations, electronic messaging, and targeted examination for registered investment companies (mutual funds). * Broker-dealers should focus on suitability, volatility-linked products, FI markup disclosures, and diligence for private placements.
Political risk-risk that investments are damaged by policy action of authorities-increased during the financial crisis due to controversies about the distribution of accumulated losses among ...stakeholders. Authorities interconnected by cross-border banks considered unilateral policies that minimised losses for domestic stakeholders at the expense of their foreign counterparts. This is at odds both with the assumption behind financial integration which presumes multilateral responses to cross-border shocks and with the typical definition of political risks that ignores the fact that not only host-country, but also home-country authorities can create such risks. This paper recasts the definition of political risk and reviews instances when political risk materialised within the EU banking market between 2007 and 2011. The analysis reveals that the EU regulatory framework needs to be enhanced to contain resurgent political risks systematically rather than through ad hoc interventions of the EU and international bodies.
Como respuesta al recurrente problema de evasión fiscal internacional, el Congreso de los Estados Unidos emitió la Ley de CumplimientoTributario de Cuentas Extranjeras (Foreign Acccount Tax ...Compliance Act, comúnmente conocida por sus siglas Fatca). Dicha ley tiene por objeto promover el cumplimiento tributario de ciudadanos y residentes de Estados Unidos que son titulares de cuentas bancarias en el exterior, dado su sistema fiscal basado en residencia y ciudadanía. A través de Fatca, se invita a las entidades financieras locales a suscribir un acuerdo con la Administración tributaria de Estados Unidos, mediante el cual se comprometan a brindar información acerca de las cuentas cuyos titulares son ciudadanos o residentes de dicho país bajo apercibimiento de sanción. La aplicación de esta norma en nuestro paísgenera muchas preguntas relativas a su naturaleza, su extraterritorialidad, su vulneración del derecho bancario, civil y penal, y demás aristas. Su inminente aplicación, el 1 de julio de 2014, genera un clima de especial interés a la espera de un pronunciamiento oficial de las autoridades locales. Definitivamente, la importancia de Fatca reside en que marca una nueva etapa respecto de los anteriores sistemas de intercambio de información que podría revolucionar la forma de administrar los impuestos.
During the last three decades, the focus of regulators has been to enhance the stability of the financial system. However, there is little research as to how the desire for higher financial stability ...for bank holding companies would affect their efficiency. Byusing a dataset of 553 US Bank Holding Companies (BHC) for the period 2004 to 2015 and a dynamic panel methodology, this study investigates whether the efficiency of BHC was affected by the requirement for higher stability and ownership structure during the sample period. The empirical findings suggest that BHC with higher stability (lower risk levels) are relatively more efficient. Regarding the ownership structure, we find evidence that BHC with a higher proportion of institutional ownership, especially those that exerting market discipline such as mutual funds and hedge funds, positively affects the efficiency of BHC. On the other hand, a higher level of government ownership adversely impacts the efficiency of BHC. Overall empirical findings support the regulatory view that higher stability levels and close monitoring by shareholders help in improving efficiency. The results remain robust with alternative measures of efficiency. These findings have implications for regulators and investors alike as there is a need to carefully evaluate regulatory policies such that they may not adversely affect efficiency while keeping the banking sector healthy and stable.
Over the last few years, central banks in industrial countries have undertaken a variety of policies that deviated from ordinary monetary policy. Why were these policies used? Did they work? What ...will be the effect of phasing them out? And what long-term concerns do they raise? Clearly, markets were broken, and there was a need to repair them. Some of these innovative instruments seemed to have worked quite well. But now central banks are struggling to get inflation up into their target bands. Large central bank balance sheets may create needed safe, short-term instruments, but take much liquidity management away from the private sector, while tempting governments to use them for other purposes. Sober thinkers need to examine the experience of the last few years and ask again, what should central banks be asked to do and what ought to be the range of actions they can take?