Week InAdvance: November 9, 2015
Global regulators set out their "final tools" this week for ending the phenomenon of "too big to fail" banks, seeking to draw a line under a period of intensive rule making after a financial crisis that tarnished the sector and weighed heavily on taxpayers. Mark Carney, chairman of the Financial Stability Board (FSB), which coordinates regulation across the Group of 20 economies (G20) to plug gaps highlighted by the 2007-09 financial crisis, said many of the key reforms have been implemented decisively and promptly. G20 leaders meeting in Turkey will be asked to endorse a reform that requires the world's 30 top banks to issue a buffer of bonds by 2019 that can be written down to raise funds equivalent to 18 percent of risk-weighted assets, if the lender goes bust. The FSB is still assessing the risks to financial stability from the activities of big asset managers and will publish recommendations "as necessary in the first half of 2016."
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