WOCCU Present at FSB Workshop on Too-Big-To-Fail Reforms

The World Council of Credit Unions was present at a workshop held by the Financial Stability Board (FSB) which discussed the effects of the post-crisis financial reforms and an evaluation of the "too-big-to-fail" (TBTF) reforms for banks.  The FSB is in the process of finalizing the results of its evaluation and is allowing input from stakeholders as part of the process.    

In particular the workshop focused on the market perceptions of the credibility of the TBTF reforms, banks' responses to those reforms, and the broader effects of the reforms.  Although these reforms focus on issues affecting Global Systemically Important Banks (GSIBs) and Domestic Systemically Important Banks (DSIBs),

WOCCU continues to be concerned that regulatory proposals adopted for these entities often are applied to smaller financial institutions such as credit unions without proper proportional tailoring (i.e. "goldplating").  Further the reforms sometimes have the effect of displacing credit unions in the market and make access to capital markets, bank services, correspondent banks more difficult, in part due to the complexity of the TBTF reforms.

Comments are due to the FSB by September 30 and the consultation may be viewed here.

Financial Stability Board