RD News 23April12

• Speech by Douglas Flint (Chairman, HSBC): Navigating risk & regulation in support of the real economy
• Warns that the recommendations of the Bank of England’s Financial Policy Committee, which include sectoral capital requirements – where banks would have to post more money against companies in specific risky sectors – and possibly a time varying liquidity tool, “could easily materially impact access to credit and its pricing.” (see p6)

• FSB: reports to G20 on progress of financial regulatory reforms
• Letter by Mark Carney (FSB Chair) to the G20, sent ahead of their meeting, reporting on the progress being made in the following priority reform areas: (i) building resilient financial institutions; (ii) ending “too big to fail”; (iii) strengthening the oversight and regulation of shadow banking activities; (iv) completing OTC derivatives and other reforms to create core continuous markets; and (v) implementing agreed G20 reforms in a timely and consistent manner.
• Report on progress in extending the framework for Global Systemically Important Financial Institutions (G-SIFIs) to domestic systemically important banks.
• Report on progress in strengthening the oversight and regulation of the shadow banking system.
• Including, on p4, a discussion of MMFs.

• Speech by José Manuel González-Páramo (ECB): Future challenges for central bank statistics. (closing speech at Sixth ECB Statistics Conference)

• Speech by Benoît Cœuré (ECB): Risk-sharing in EMU: before, during and after the crisis

• Speech by Masaaki Shirakawa (Governor, Bank of Japan): Society, economy and the central bank

• Federal Reserve
• The Board has made an announcement to ‘clarify’ that institutions subject to the Volcker rule will have the full ‘conformance period’ afforded by the statute, meaning that they will have until 2014 to fully adjust to the final rules.
• The Board announced the formation of the Model Validation Council, which will provide the Federal Reserve with independent advice on its assessment of the models used in bank stress tests, and will hold a two-day symposium in September to discuss best practices in stress testing.
• FAQs regarding models used in the stress tests in the recent Comprehensive Capital Analysis and Review were also released.