The European Commission, the government body responsible for drafting legislative proposals adopted by the European Parliament and European Council, recently published a report on its macroprudential review for banks, the systemic risks relating to nonbank financial intermediaries (NBFIs) and their interconnectedness with banks. The review, which was required under the European Union’s Capital Requirements Regulation,...
The prudential bank regulators recently proposed revisions to depository financial institutions’ quarterly Consolidated Report of Condition and Income filings (i.e., call reports) to address an observed lack of granularity and inconsistency of reporting on loans to nondepository financial institutions (NDFIs). These filings are used by the regulators to inform monetary and public policy decisions. The...
The Financial Stability Oversight Council (FSOC) recently published updated guidance on its process for determining that nonbank financial companies are systemically important. These revisions, initially proposed in April 2023, update the interpretive guidance adopted in 2019. A determination as a systemically important financial institution (SIFI) would subject a nonbank to supervision by the Federal Reserve...
On September 14, the Board of the International Organization of Securities Commissions (IOSCO), which includes the SEC, published two reports. First, a thematic analysis of “Emerging Risks in Private Finance,” which comes in light of the rapid growth of the private credit and private equity asset classes globally since the Global Financial Crisis. The second...
