With this consultation, the FSB – now joined by other global agencies – continues the review of post-crisis standards to identify any unintended effects required by Group of Twenty (G20) heads of state for their November 2018 meeting.  As with the earlier consultation on infrastructure finance, this document looks not only at unintended effects, but also at whether any of these undermine the over-arching goal of a more stable financial system.  And, as in the earlier report, the agencies’ preliminary conclusion here is that, while there are indeed unintended effects with negative market consequences, overall financial-system stability is secured by the rules largely as they now stand.  This paper is based on – indeed consists principally of – research analyses instead of regulatory conclusions.  Although some of this work, especially the results of market outreach, are far less sanguine about regulatory effects, global regulators appear unwilling to contemplate substantive change.

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