Hints and tips:
...As supervisors spend a significant part of their time working with IMAS, its design directly affects the structure of . . . processes and may ultimately affect [the ECB’s] supervisory culture....
...The relatively low use of collective assessment will be an “important area of further scrutiny for supervisors,” she added....
...“Supervisors should be concerned not just with the firms as entities but with the industry as a portfolio of firms [reflecting] the correlation properties across firms.”...
...However, smaller supervisors in markets like Ghana, Togo or Cote D’Ivoire see the large exposure to Nigeria as a risk in its own right....
...Their trunks remained hotter than their ears and other areas, suggesting that they were acting as heat-emitting “radiators”....
...Instead, we should seek to marshal the collective expertise and information of all financial supervisors to identify and respond to developments that threaten the stability of the system as a whole....
...The Federal Reserve also would expect to carefully monitor and address, either individually or in conjunction with other supervisors and regulators, the potential for additional spillover effects....
...Currently, the Federal Reserve relies on a patchwork of authorities, largely derived from our role as a banking supervisor, as well as on moral suasion to help ensure that critical payment and settlement...
...We note with concern the adverse impact of the global crisis on low income countries’ (LICs) capacity to protect critical core spending in areas such as health, education, safety nets, and infrastructure...
...and adopt high standards in areas such as governance, risk management, and transparency....
...As a result, there are no reliable, comprehensive data available to assess whether such funds individually or collectively pose a threat to financial stability....
International Edition