Report on the Effect on Host Countries of Balance Sheet Consolidation and Risk Management Practices by Global Banks

Abstract

This report has been prepared by the FSB Regional Consultative Group for the Americas. It analyses how global banks measure risks at the consolidated level and assign capital to their foreign operations and the effect of such practices on host countries, based on a stock-taking exercise of major internationally active banks in the Americas.It also proposed recommendations to address host countries’ concerns on the risk management practices used by global banks at a consolidated level.

Notice

This document has been prepared by the FSB Regional Consultative Group (RCG) for the Americas and is being published to disseminate information to the public. The views expressed in the document are those of the RCG for the Americas and do not necessarily reflect those of the FSB.

The RCG for the Americas comprises FSB-Member authorities as well as non-FSB member authorities. The RCGs have been established as a mechanism for the FSB to consult with non-member jurisdictions and for the RCG members to share amongst themselves and the FSB views on vulnerabilities affecting the financial system, FSB policy initiatives and on other measures to promote financial stability.

A list of members of the RCG for the Americas can be found here