Financial Stability Board (FSB)

Too networked to fail?

The need to craft special treatment for banks that are too big or interconnected to fail has long been a concern for regulators, but of equal importance is the challenge of identifying which institutions should be subjected to such measures. How can…

Where there’s a will…

Living wills have quickly emerged as a new measure to ensure banks are better prepared for the next crisis. But clear definitions of exactly what information they should contain and how they should be drawn are lacking

Remuneration: it's payback time

Disgruntled taxpayers and their political representatives are set on revenge, making bankers pay for their mistakes through compensation taxes and restrictions. But a more constructive approach will be needed to sustainably reform such a complex and…

Questioning the compensation carrot

Regulators on both sides of the Atlantic have demanded that bank compensation packages are adjusted for risk. A variety of proposals have been released by individual supervisors, but they are simpler – and in some cases, more draconian – than many were…

Loan loss dynamics

The International Accounting Standards Board unveiled a new expected loss approach in November, following criticisms of the current incurred loss model. But European regulators have declared their preference for dynamic provisioning – and have even…

The chemistry of compensation

Regulators across the world are clamping down on executive compensation in a bid to align employee remuneration with sound risk management principles. Despite the good intentions, many of the proposals could have unintended consequences. Peter Madigan…

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