Global Regulators Unveil 2023 GSIB List Methodology
Following publication of the FSB’s updated 2023 GSIB list, the BCBS today published additional details of the assessment including denominators of the high-level indicators used to calculate bank scores, high-level indicators for each bank in the sample, cut-off scores, and thresholds used to allocate GSIBs to buckets for calculating higher loss-absorbency requirements.
Carstens Presses for Unified Ledger, CBDC
Pointing to the speed of AI adoption in sharp contrast to financial-system innovation, BIS General Manager Agustín Carstens has reiterated his call for central bank “unified ledgers.” These would serve as a “network of networks” digital infrastructure, with Mr. Carstens indicating that the result would enable instantaneous payment and settlement of any transaction, use of smart contracts and composability, and seamless integration and automation of digital asset payments.
SEC Finalizes Massive, Controversial ABS-Conflict Standards
Thirteen years after the Dodd-Frank Act demanded it (see FSM Report ABS17), the SEC today voted 4-1 to approve controversial conflict-of-interest standards for asset-backed securities (ABS). The final rule is significantly amended from the proposal, so much so that SEC Commissioner Peirce said that a new proposal was required prior to final adoption.