FSB makes key appointments at Cape Town meeting

FSB makes key appointments at Cape Town meeting

South African Reserve Bank governor Lesetja Kganyago and Norman Chan, the chief executive of the Hong Kong Monetary Authority, have been handed new roles at the Financial Stability Board (FSB).

Kganyago has been named chair of the FSB’s committee on standards implementation while Chan, who has led HKMA since 2009, will head up the regulator's supervisory and regulatory cooperation group. 

They replace Ravi Menon, managing director at Singapore's central bank, and Daniel K Tarullo who recently resigned from the US Federal Reserve.

Both appointments were announced this week as FSB members met in Cape Town to discuss post-crisis reforms.

The international body of regulators is currently reviewing shadow banking risks, including securities lending, and monitoring the effects of legislation impacting OTC derivatives.

Interdependencies between central counterparties (CCPs), major clearing members and financial service providers and the resulting systemic implications is another major focus area.

This week FSB officials announced that a “comprehensive framework” for evaluating the post-implementation effects of the reforms will be delivered by July.

In a statement, the FSB added that uncertainty over the path of future interest rates may pose significant, but varied, risks to banks and institutional investors.

It noted that shifts by insurers and pension funds into higher-risk assets raise concerns about losses and portfolio rebalancing when the credit cycle turns.


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