Financial regulators assure further assistance to the industry during COVID-19
Global financial regulators guarantee to provide ease in the regulations to deal with the COVID-19 outbreak. The Financial Stability Board reported in a meeting that it is prepared to arrange additional relief on capital requirements, forthcoming regulatory deadlines, and other standards.
Global financial regulators vow to keep easing rules to cope with the coronavirus pandemic https://t.co/mBpWAA6z6J
— Bloomberg Markets (@markets) April 15, 2020
Hundreds of billions of dollars have been exempted by the authorities by easing capital demands on banks, soften key points of the post-2008 crisis rulebook, postponed new margin requirements on derivatives and backstopped markets amounted to trillions of dollars in funds.
Regarding the consequences of the outbreak on financial stability, the FSB explained that these steps assist in providing the flexibility needed to assist lending to the real economy, and maintain an international level playing field.
It stated, “Such actions won’t roll back regulatory reforms or compromise the underlying objectives of existing international standards.”
The FSB, which is headed by U.S. Federal Reserve Vice Chair Randal K. Quarles, was structured in the immediate fallout of the 2008 financial crisis to detect and impede threats to the global financial system.