What is it about?
The need for enhanced disclosure requirements, greater transparency, in particular through regulatory reporting - as well as greater coordination and communicative instruments aimed at facilitating comparability, consistency and uniformity in the application of regulatory standards.
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Why is it important?
Areas of focus as highlighted by the Progress Report by the FSB and IMF (2015:13 ) paragraph 17, highlight the importance of the above and reiterate the above mentioned areas: • Disseminating consistent and comparable Financial Soundness Indicators. • Ensuring regular collection of the International Banking Statistics and the Coordinated Portfolio Investment Survey. • Providing consistent securities statistics. • Improving the availability of sectoral accounts data. • Disseminating timely and comparable general government operations and debt data
Perspectives
The degree of consistency and comparability between financial soundness indicators, as well as the reliability and relevance of such indicators requires consideration of prevailing economic conditions, institutional and legal backgrounds of financial institutions, systems and structures of financial regulation - as well as developments in vital areas of the economy over the years - areas such as real estate markets and asset prices - all of which have significantly impacted traditional channels of transmission - in respect of monetary policy considerations. Areas such as inflation levels and interest rate expectations - price transmission channels having been considerably impacted through asset bubbles and channels of transmission and therefore indices reflecting such developments over the years need to be reviewed and constantly updated by supervisors - particularly in jurisdictions which had a less developed real estate industry.
Prof Marianne Ojo
Northwestern University
Read the Original
This page is a summary of: Mitigating Information Asymmetries in Capital Markets, January 2017, IGI Global,
DOI: 10.4018/978-1-5225-1900-3.ch002.
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