Author Archives: Benjamin Wood

CFA Institute Systemic Risk Council Writes to Treasury Secretary Yellen on Non-Bank Financial Institutions

The Financial Stability Oversight Council (FSOC) recently voted to issue 12 CFR Part 1310 (Authority to Require Supervision and Regulation of Certain Nonbank Financial Companies) and the Analytic Framework for Financial Stability Risk Identification, Assessment, and Response (Proposed Analytics Framework or PAF) for public comment. The Systemic Risk Council believes that non-bank financial institutions (NBFIs) and their activities represent a growing and unaddressed vulnerability to financial stability in the U.S. and beyond. We support the FSOC as it recalibrates the designation process and upgrades its capabilities to gather necessary data and improve its line-of-sight on nonbank leverage, interconnectedness, liquidity and risk management gaps. We believe that the measure of success for these Proposals will be a process that is calibrated for prompt, corrective action and where the Office of Financial Research will have appropriate resources for staffing, monitoring capabilities, and data analysis to implement the PAF.

Letter PDF

CFA Institute Systemic Risk Council Publishes Spring 2023 Newsletter

For further information contact Kurt Schacht at Kurt.Schacht@cfainstitute.org

WASHINGTON, D.C.— May 3, 2023 The CFA Institute Systemic Risk Council has released its Spring 2023 Newsletter.

Each quarter, we will recap the activities of the CFA Institute Systemic Risk Council (SRC or the Council) and highlight the key systemic debates and challenges affecting global markets and regulators. This first issue of the year comes amidst significant concerns in the global banking realm as the disruptions with Credit Suisse, Silicon Valley Bank, and most recently First Republic Bank have sparked systemic alarms since early March. Other systemic areas of focus include:

  • Addressing shadow banking and non-bank financial institutions
  • Maintaining strong bank capital ratios and the supplemental leverage ratio
  • Ensuring that money market funds and other open-end fund products have adequate liquidity risk management tools
  • Preparing our global financial system for emerging economic shocks related to climate change

 

LINK: http://www.systemicriskcouncil.org/wp-content/uploads/2023/05/Quarterly-Systemic-Report-Spring-2023.pdf