The Financial Stability Board (FSB) on Tuesday published for consultation the main elements of a proposed framework that will help policymakers analyze whether G20 financial regulatory reforms are working as intended, and to identify any major unintended consequences.
Authorities have so far primarily monitored the implementation of the comprehensive post-crisis program of reforms, and haven’t examined the effects of the reforms as closely, the FSB notes. “With the main elements of the reforms agreed and implementation of many core reforms underway, initial analysis of the effects of these reforms is becoming possible,” it says in a statement.
The FSB’s consultation paper sets out proposed processes and analytical approaches for evaluating the effects of the reforms. The evaluation process should facilitate consultation and collaboration between the various regulators and standard-setters that are involved with adopting the reforms, the FSB says, and this should include public consultation.
“The analysis will be data-driven and will consider a wide range of interests. Evaluations will focus on assessing the social benefits and costs, and consider private benefits and costs that accrue to particular market participants or end-users where these help assess social benefits and costs,” the FSB says.
The FSB is seeking feedback on the proposed framework by May 11. It says that the ultimate framework will be utilized over the coming years.