washington (reuters) – the international financial authorities have decided to abandon the criterion of “too big to fail” or “too big to fail”) to assess the risks posed by the insurers of the global financial system, according to a source close to the case.
the financial stability board, the financial stability board, fsb), which co ordinates the g20 financial regulators, is expected to announce in the next few weeks we will focus more on the activities of a company, rather than its size in order to decide whether it should strengthened supervision, said the source.
enhanced supervision requires the enterprise to strengthen its capital to cover potential losses, increasing costs and potentially reducing the returns to shareholders.
the insurance industry for years to change their approach and control of their activities, because their size is not automatically classified as representing a systemic risk.
the change of the fsb comes as the us treasury has asked him to soften its stance on the insurer, found the source.
a spokesman for the fsb has refused to comment.
the administration of president donald trump has undertaken to revise the rules adopted after the global financial crisis of 2007-2009.
in september, the united states financial stability oversight council (financial supervisory fsoc) withdrew from the insurer aig from the list of systemically important financial institutions (unesco). [nl8n1mb02c]
this has fueled questions about whether the fsb would adopt a similar position.
(peter schroeder and michelle price; catherine mallebay – vacqueur for service in french).
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Translated by forexguides.info Team