FSB completes peer reviews of Singapore and Hong Kong
01 March 2019 Basel
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The Financial Stability Board has released peer reviews for both Singapore and Hong Kong.
The Hong Kong peer review, released on 28 February, examined two topics relevant for financial stability, over-the-counter (OTC) derivative market reforms, and the framework for resolution of financial institutions.
The review focused on the steps taken by the authorities to implement reforms in these areas, by following up on relevant International Monetary Fund (IMF) Financial Sector Assessment Program (FSAP) recommendations and G20/FSB commitments.
The FSB said that 鈥済ood progress has been made in recent years on both topics, reflecting Hong Kong鈥檚 strong commitment to implementing international standards, driven by its status as an international financial centre鈥�.
It added: 鈥淭he authorities have put in place a well-defined legal and regulatory framework 鈥� in terms of scope, assignment of responsibilities and enforcement 鈥� to implement the G20 commitments to reform OTC derivatives markets.鈥�
鈥淐onsiderable progress has been made in implementing some OTC derivatives reform areas 鈥� trade reporting, central clearing, margin/capital requirements for non-centrally cleared derivatives 鈥� while work is underway to implement the remaining areas and measures.鈥�
The FSB has also published its peer review of Singapore, focusing on the macroprudential policy framework and the framework for resolution of financial institutions.
This review, released on 26 February, focused on the steps taken by the authorities to implement reforms in these areas.
This is included the following up on relevant International Monetary Fund (IMF) Financial Sector Assessment Program (FSAP) recommendations, as well as G20 and FSB reforms.
The peer review found that good progress has been made in recent years on both topics, which the FSB said reflects Singapore鈥檚 鈥渟trong adherence to international standards and focus on financial stability鈥�.
However, the FSB stated that 鈥淪ingapore needs to clarify responsibility within Monetary Authority of Singapore for the calibration and implementation of its macroprudential policies鈥�, and should 鈥渃ontinue to enhance the risk assessment framework in terms of process, use of modelling tools and ongoing work to assess systemic risks from fintech鈥�.
On the framework for resolution of financial institutions, FSB said Singapore should 鈥渃ontinue working to refine, expand and operationalise resolution planning鈥�.
This included continuing resolution planning on 鈥渄omestic systemically important banks as well as for insurance companies and financial market infrastructures that could be systemic in failure鈥�.
The Hong Kong peer review, released on 28 February, examined two topics relevant for financial stability, over-the-counter (OTC) derivative market reforms, and the framework for resolution of financial institutions.
The review focused on the steps taken by the authorities to implement reforms in these areas, by following up on relevant International Monetary Fund (IMF) Financial Sector Assessment Program (FSAP) recommendations and G20/FSB commitments.
The FSB said that 鈥済ood progress has been made in recent years on both topics, reflecting Hong Kong鈥檚 strong commitment to implementing international standards, driven by its status as an international financial centre鈥�.
It added: 鈥淭he authorities have put in place a well-defined legal and regulatory framework 鈥� in terms of scope, assignment of responsibilities and enforcement 鈥� to implement the G20 commitments to reform OTC derivatives markets.鈥�
鈥淐onsiderable progress has been made in implementing some OTC derivatives reform areas 鈥� trade reporting, central clearing, margin/capital requirements for non-centrally cleared derivatives 鈥� while work is underway to implement the remaining areas and measures.鈥�
The FSB has also published its peer review of Singapore, focusing on the macroprudential policy framework and the framework for resolution of financial institutions.
This review, released on 26 February, focused on the steps taken by the authorities to implement reforms in these areas.
This is included the following up on relevant International Monetary Fund (IMF) Financial Sector Assessment Program (FSAP) recommendations, as well as G20 and FSB reforms.
The peer review found that good progress has been made in recent years on both topics, which the FSB said reflects Singapore鈥檚 鈥渟trong adherence to international standards and focus on financial stability鈥�.
However, the FSB stated that 鈥淪ingapore needs to clarify responsibility within Monetary Authority of Singapore for the calibration and implementation of its macroprudential policies鈥�, and should 鈥渃ontinue to enhance the risk assessment framework in terms of process, use of modelling tools and ongoing work to assess systemic risks from fintech鈥�.
On the framework for resolution of financial institutions, FSB said Singapore should 鈥渃ontinue working to refine, expand and operationalise resolution planning鈥�.
This included continuing resolution planning on 鈥渄omestic systemically important banks as well as for insurance companies and financial market infrastructures that could be systemic in failure鈥�.
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