Finance-Banking-and-the-Shadow-Banking-System-Resources

are too narrow

Bafin is working on its own proposals to regulate the sector

make dodging rules more tedious and expensive

So-called shadow banking that takes place outside the scope of regulators is being targeted by financial watchdogs on concern that it may be used to evade a global clampdown on excessive risk-taking

The FSB

established a list of shadow-banking activities that may warrant tougher oversight

will seek agreement on the rules by the end of 2012

Authorities should know why money is deposited offshore

need for additional rules for derivatives

credit-default swaps

who should be allowed to sell CDS

purchase of the instruments should be restricted

the CDS market still isn’t transparent

tripling how much core capital lenders must hold to at least 7 percent of assets

how much freedom national regulators should have to go beyond minimum EU capital rules

Finance ministers are set to discuss the rules again at a meeting in Brussels

German banks that lend to local economies dominated by medium-sized companies are seeking to loosen standards for risk weighting of these loans

The current crises were caused by subprime and government bonds

force banks to hold Tier 1 capital equivalent to 3 percent of their total assets

would prevent lenders from accumulating assets worth more than 33 times their reserves

The measure is needed to stop banks from evading other capital rules

considering how to expand the range of assets that qualify as highly liquid

concerns that the current list is too narrowly focused on government debt

survive a 30-day credit squeeze

set to take effect in 2015

We, for example, have a huge government bond market; others don’t