Shadow Financial Regulatory Committee met in Milano on April 7 and 8 to prepare Statement 44, Allocation of Losses of
Banks and Sovereigns in Europe. The Statement was presented on April 9 at a conference on 'The Future of Europe' at the Italian
Institute for International Political Studies.
Click here to the Statement "Allocation of Losses of Banks and Sovereigns in Europe"( Milan, April 9, 2018)
Members of the ESFRC
met in Rome on January 23 to draft Statement 43, "Legacy
Problems as a Threat to the European Banking union." The Statement was presented on January 24 at a conference on "Europe
2017: Make It or Break It" organized by the Luiss School of Government.
Click here to the Statement "Legacy Problems as a Threat to the European Banking Union"( Rome, January 24, 2017)
The ESFRC met in London on Sept. 16, 2016 and presented its 42nd Statement "Europe
under Threat: The Political Dynamics of Brexit Interacting with Weakness in the European Financial System."
The presentation was part of a conference on "Economic and Political Governance in Europe after Brexit"
at Queen Mary University Centre for Commercial Law Studies.
Click here to link to the Statement "Europe under Threat: The Political Dynamics of Brexit Interacting with Weakness in the
European Financial System." (London, September 16, 2016)
The Shadow committee met in Brussels on March 19-21 to discuss Shadow Banking. Statement
No. 41 was presented at a press conference on March 21. It is with sadness we received the news about the bombings in Brussels
the following morning.
Click here to link to the Statement "Towards Banking Union and Capital Markets Union in Europe: The Role of Shadow Banks"
(Brussels, March 21, 2016)
The ESFRC met in Frankfurt on June 27-29 while the Greek crisis came to a critical point. At a press conference
on June 29 the Statement 40, ESCALATING CRISIS IN THE EUROZONE: THE CASE FOR CONDITIONAL DEBT RELIEF FOR GREECE, was presented.
Click here to link to the Statement "ESCALATING CRISIS IN THE EUROZONE:THE CASE FOR CONDITIONAL DEBT RELIEF FOR GREECE"(Frankfurt,
June 29, 2015)
Click here to link to the Statement "Complexity and Credibility in the Single Resolution Mechanism"(London, November 10, 2014)
A joint meeting of Shadow Financial Regulatory Committees of Australia-New Zealand, Asia, Europe, Japan, Latin
America and the US was held in Tokyo on October 26-28, 2013.
The theme of the
meeting was “Regulatory Reforms after the Global Financial Crisis.” This can be considered as a sequel to
the last joint meeting that was held in Washington, DC in October 2011. For the 2011 meeting, each committee prepared a
report on how the global financial crisis affected the financial system and the economies in each region. The result
was published as a book titled World in Crisis: Insights from Six Shadow Financial Regulatory Committees from Around
the World (FIC Press, 2012).In this meeting, each committee was asked to prepare a report on the development of regulatory reforms
in each region in the aftermath of the global financial crisis. These reports will be compiled and published in the near future.The Joint
Shadow Committee also produced and presented a Statement "Misdiagnosis of Crisis has led to Botched Liquidity Regulation."
The Committee recommends disclosure of a simple liquidity indicator (SLI) as an alternative to the Basel Committee's required minimum
liquidity coverage ratio. The SLI is easier to measure, verify and administer by financial market regulators, imposes lower
compliance costs, and can be easily applied to estimate the impact of stress. In addition, it facilitates comparison across
banks and fosters market discipline.
Click here to link to Joint Statement "Misdiagnosis of Crisis has led to Botched Liquidity Regulation" (Tokyo, October 28,
The ESFRC met in Brussels on September 15 and
16. At a press conference on September 16 committee members presented Statement No 37, "Preparing for a European Banking
The statement emphasizes the need for having procedures for resolution
of distressed banks in place at the time the Asset Quality Review of European banks is completed. Some agreement on procedures
for bail-ins of banks' creditors is needed even if each country has not yet implemented a law for bank resolution. The Statement
also proposes a "separability rule' that host country subsidiaries of cross-border banks should be operationally separable
from its parent bank within 24 hours in order to avoid the kind of problems that plagued the Lehman Brothers bankruptcy as
a result of the great discrepancy between legal organization and operational organization of subsidiaries in many countries.
On October 22rd, 2012 the
ESFRC published Statement No.36 on "Resolution and Recovery in a Banking Union".
ESFRC met in London on October 21-22 and presented a Statement, “Resolution and Recovery in a European Banking
Union” at a conference on European Banking Union at the London School of Economics on Oct. 22. The conference was sponsored
by the Financial Markets Group at LSE, International Centre for Financial Regulation, Tilburg University and Queen Mary University,
University of London.
Click here to download Comments on Charles Randell European Banking Union: Recovery and Resolution Tools by Tom Berglund
Click here to download Comments on Charles Randell European Banking Union: Recovery and Resolution Tools by Clas Wihlborg
In December 2011, the Joint Shadow Committee of Asia, Australia,
New Zealand, Europe, Japan, Latin America and United States published a book about
the impact of the financial crisis on the regions represented by the Shadow Committees, and on policy reforms in the wake
of the crisis.
The book, The World in Crisis: Insights from Six Shadow
Financial Regulatory Committees from Around the World, edited by Robert E. Litan can be downloaded at http://finance.wharton.upenn.edu/FIC/FICPress/crisis.pdf
The ESFRC met in London on Jan. 22-24, 2011 to issue a Statement
on "Reform of bank liquidity requirements" at a conference on Reforming Financial Regulation and Supervision:
The Road Ahead at the London School of Economics on Jan. 24.
Click here to download the- LSE Conference Presentation by Clas Wihlborg