In the aftermath of the financial crisis, the FSB and the G20 Leaders have identified as a priority the need for more intense and effective supervision particularly as it relates to systemically important financial institutions (SIFIs). The level of supervision applied by national authorities must be commensurate with the potential destabilization risk that such firms pose to their own domestic financial systems, as well as the broader international financial system.
This report sets out recommendations for making the supervision of financial institutions more intense, effective and reliable. The recommendations are drawn from an internationally co-ordinated assessment of lessons from this crisis. While the recommendations are primarily aimed at making SIFIs less susceptible to failure, there are also lessons for the supervision of financial institutions more generally. Continue reading