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. In so doing, authorities will be mindful of the impact interventions may have on the public purse and will, as far as possible: maintain incentives for financial institutions […]
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In its April 2008 Report on Enhancing Market and Institutional Resilience (“the FSF Report”), the Financial Stability Forum (FSF) and its member bodies issued a comprehensive set of recommendations reflecting a consensus, both internationally and cross-sectorally, on the actions needed to address the fundamental weaknesses that have been at the root of the present turmoil […]
This note aims to provide an overall framework that could help evaluate policy options to address the procyclicality of the financial system. While the framework is general in nature, the note focuses exclusively on options for prudential and financial reporting arrangements and the associated risk management and incentives issues. It therefore excludes other possible policy […]
2 April 2009
This note sets out recommendations to address the potential procyclicality of the regulatory capital framework for internationally active banks. Some of these recommendations are focused on mitigating the cyclicality of the minimum capital requirement, while maintaining an appropriate degree of risk sensitivity. Other measures are intended to introduce countercyclical elements into the framework. The recommendations […]
The principles in this document promote strong governance processes around valuations; the use of reliable inputs and diverse information sources; the articulation and communication of valuation uncertainty to internal and external stakeholders; the allocation of sufficient banking and supervisory resources to the valuation process; independent verification and validation processes; consistency in valuation practices for risk management and reporting purposes, where possible; and strong supervisory oversight around bank valuation practices.
This document includes high-level principles for cross-border cooperation on crisis management between relevant authorities.
12 March 2009
9 March 2009