With the support of the FSB, they announced their commitment to adopt and implement Principles of Reform, allowing national authorities to implement global standards, consistently. Avoiding market fragmentation, protectionism, and regulatory arbitrage. They agreed to prioritize these issues for the Seoul Summit:
- Committed to fully implement the new bank capital and liquidity framework. Often referred to as Basel. It was drawn up by the Basel Committee and the Governors and heads of Supervision.
- Endorsed the Financial Standards Board's increase supervision intensity and effectiveness.
- FSB's policy framework, work processes and timelines to mitigate the risks posed by Systemically Important Financial Institutions (Too-Big-To-Fail).
- In an internationally consistent, non-discriminating manner, implement all aspects of the G20 financial regulation agenda. They highlighted, commitments on OTC derivatives, compensation practices, accounting standards, and the principles on reducing reliance on credit rating agencies.
- More work is needed on the tools that will mitigate the impact of excessive capital flows. Taking into account emerging market economies, with outreach, commodity derivative markets, shadow banking, firming up market integrity.
- Decisively tackle Non-Cooperative Jurisdictions
Article by People Port
Copyrighted, 2010, J John Swanko, All rights reserved. This work is licensed under a Creative Commons Attribution 3.0 United States License For advertising opportunities or comments PeoplePort@gmail.com
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