FSB: Key Standards For Sound Financial Systems


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FSB: Key Standards For Sound Financial Systems

Tuesday, September 05, 2017  12.48PM / FSB Compendium of Standards

The Key Attributes of Effective Resolution Regimes for Financial Institutions (Key Attributes) has been added by the FSB to its list of Key Standards for Sound Financial Systems. The Key Attributes is the international standard for resolution regimes, and forms part of the set of policy measures to address systemically important financial institutions that was endorsed by the G20 in November 2011.

The inclusion now of the Key Attributes in the list of FSB Key Standards for Sound Financial Systems follows the approval of a methodology in October 2016 for assessing jurisdictions’ compliance of their bank resolution framework with the Key Attributes. In July 2017, the Key Attributes was also included in the list of standards for which assessments are carried out by the International Monetary Fund (IMF) and World Bank of their member countries under the Standards and Codes Initiative.

The FSB Key Standards for Sound Financial Systems form part of the FSB Compendium of Standards. The Compendium aims to provide a one-stop, easy-to-understand reference for the various economic and financial standards that are accepted by the international community as important for sound financial systems. The FSB Key Standards are broadly accepted as representing minimum requirements for good practice that countries are encouraged to meet or exceed and are the same standards that the IMF and World Bank assess as part of their Standards and Codes Initiative.

The key standards come under the broad policy areas of
Macroeconomic Policy and Data Transparency, Financial Regulation and Supervision and Institutional and Market Infrastructure.

Find out the
criteria, see the table of key standards or browse the compendium of standards.

The standards under the broad policy areas highlighted above have been designated by the FSB as key for sound financial systems and deserving of priority implementation depending on country circumstances. These standards are broadly accepted as representing minimum requirements for good practice that countries are encouraged to meet or exceed.


Criteria for Determining the Key Standards 

The FSB applied the following criteria for determining the list of key standards for sound financial systems:
· relevant and critical for a stable, robust, and well-functioning financial system (including in light of the lessons from the recent financial crisis), in order to impart a sense of prioritisation in implementation;

· universal in their applicability, by covering areas that are important in nearly all jurisdictions;

· flexible in implementation, by being general enough to take into account different country circumstances;

· broadly endorsed - namely, that such standards should have been issued by an internationally recognised body in the relevant area in extensive consultation with relevant stakeholders. To satisfy this criterion, the standard should preferably undergo a public consultation process. This criterion would also be satisfied when the standard-setting body has wide representation, or when the standard has been endorsed by International Financial Institutions (IFIs), such as the IMF and the World Bank; and

· assessable by national authorities or by third parties such as IFIs. 

Key Standards by Policy Area 

The list of key standards will be periodically reviewed and updated by the FSB in light of policy developments at the international level. 

Macroeconomic Policy and Data Transparency 

Enhanced General Data Dissemination System (e-GDDS)
The GDDS fosters sound statistical practices with respect to both the compilation and the dissemination of economic, financial, and socio-demographic statistics 

Code of Good Practices on Fiscal Transparency

 

The code identifies a set of principles and practices to help governments provide a clear picture of the structure and finances of government.          

 

 

Code of Good Practices on Transparency in Monetary and Financial Policies (MFP)

 

The MFP identifies desirable transparency practices for central banks in their conduct of monetary policy and for central banks and other financial agencies in their conduct of financial policies.          

 

 

Special Data Dissemination Standard (SDDS)

 

The SDDS serves to guide countries that have, or that might seek, access to international capital markets in the dissemination of economic and financial data to the public.          

 

 

Financial Regulation and Supervision

 

Insurance Core Principles, Standards, Guidance and Assessment Methodology

 

 

 

Core Principles for Effective Banking Supervision

 

The Core Principles for Effective Banking Supervision are the minimum standard for sound prudential regulation and supervision of banks and banking systems.          

 

 

Objectives and Principles of Securities Regulation

 

This document sets out 38 principles of securities regulation, which are based upon three objectives of securities regulation. These are: protecting investors; ensuring that markets are fair, efficient and transparent; and reducing systemic risk.         

 

 

Institutional and Market Infrastructure

 

International Standards on Auditing (ISA)

 

International Standards on Auditing (ISAs) are professional standards that deal with the independent auditor's responsibilities when conducting an audit of financial statements. ISAs contain objectives and requirements together with application and other explanatory material.

G20/OECD Principles of Corporate Governance
The Principles are intended to assist in the evaluation and improvement of the legal, institutional and regulatory framework that influences corporate governance, and also provide guidance for stock exchanges, investors, corporations and others that have a role in developing good corporate governance.

IADI Core Principles for Effective Deposit Insurance Systems
This standard serves as a benchmark for jurisdictions to assess the quality of their deposit insurance systems and for identifying gaps in their deposit insurance practices and measures to address them. It may also be used by the IMF and World Bank in the context of the Financial Sector Assessment Program (FSAP) to assess the effectiveness of jurisdictions deposit insurance systems and practices.

Key Attributes of Effective Resolution Regimes for Financial Institutions
The Key Attributes, adopted in 2011, set out the core elements that the FSB considers to be necessary for an effective resolution regime. This 2014 version provides additional guidance on implementing and interpreting the Key Attributes.

Principles for Financial Market Infrastructures
This document contains 24 principles to be observed by financial market infrastructures (systemically important payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories) and five responsibilities of relevant authorities in regulating, supervising and overseeing these infrastructures.

FATF Recommendations on Combating Money Laundering and the Financing of Terrorism & Proliferation
A complete set of counter-measures against Money Laundering and the Financing of Terrorism and Proliferation, covering the required legal, regulatory, and operational measures.

Insolvency and Creditor Rights Standard
The ICR Standard is designed as a broad-spectrum assessment tool to assist countries in their efforts to evaluate and improve insolvency and creditor/debtor regimes. 

International Financial Reporting Standards (IFRS Standards)
IFRS is a single set of accounting standards, developed and maintained by the IASB with the intention of those standards being capable of being applied on a globally consistent basis. 

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Tags: Resolution ,  Regimes ,  Attributes ,  Financial Systems ,  G20 ,  policy, 



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