The Principles are intended to reduce incentives towards excessive risk taking that may arise from the structure of compensation schemes.
Uncategorized
2 April 2009
FSF re-established as the Financial Stability Board with a broadened mandate to promote financial stability.
The FSF issued reports today covering recommendations for addressing procyclicality in the financial system, principles for sound compensation practices and principles for cross-border cooperation on crisis management.
2 April 2009
Consistent with statements made in the “Report of the Financial Stability Forum on Enhancing Market and Institutional Resilience” (7 April 2008) (FSF Report – April 2008), and as described more fully in a follow up to that report issued on 10 October 2008 (FSF Report – October 2008), the Financial Stability Forum (FSF) has set […]
This report explores the link between leverage and valuation in the light of the recent experience of market stress. Prior to the crisis, traditional balance sheet measures of leverage did not give an unambiguous signal of higher risk during the boom years of 2003-07. While balance sheet leverage increased at European banks and US investment […]
The recommendations cover the following areas: the bank capital framework, bank loan loss provisions, and leverage and valuation.
2 April 2009
These Principles aim to ensure effective governance of compensation, alignment of compensation with prudent risk taking and effective supervisory oversight and stakeholder engagement in compensation.
The objective of financial crisis management is to seek to prevent serious domestic or international financial instability that would have an adverse impact on the real
economy.
Prepared remarks by Mario Draghi, Chairman of the Financial Stability Forum at the conclusion of London Summit on 2 April 2009.