PwC's Managing upstream risk: Regulatory reform review - An asian perspective December 2013 | Page 7

Members considered current practices of
internationally active banks in measuring risks at a
consolidated level and their implication for the host
countries. Members also reviewed the assessment of
shadow banking entities and activities in the region
based on the monitoring exercise conducted by the
members.
Discussions on regulatory reforms focused on:
• the FSB’s policy framework and progress in
addressing “Too-Big-To-Fail”;
• high-level policy recommendations on
strengthening oversight and regulation of shadow
banking; and
• recent developments on cross-border cooperative
issues regarding the implementation of OTC
derivatives markets reforms. Brazil shared its
experience in registering OTC derivatives contracts
and other financial assets to trade repositories.
The IIF’s Market Monitoring Group on 5 December
2013 after a meeting in New York published a
statement warning that some regulatory changes
aimed at stability may be (and in some cases already
are) impacting the efficiency of capital markets in
ways that could work against the broader policy goal
of supporting stronger economic growth—and could
potentially contribute to new systemic risks. The
following (in brief) are areas of particular concern
that have been identified:
• OTC derivative reforms will provide more
transparency and stability but may have negative
consequences for end users and the system more
broadly.
• Requirement of more collateral constrains financi