Bank supervision and Working Group on Sterling Risk-Free Reference Rates: Difference between pages

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In the UK, the Prudential Regulation Authority is the body responsible for the prudential regulation and supervision of banks and similar financial firms.  
''Risk-free interest rates''.


The Working Group on Sterling Risk-Free Reference Rates was established in 2015 to support the development and adoption of alternative near risk-free benchmarks.


In the Euro zone, the European Central Bank (ECB) regulates the financial stability of banks through its Single Supervisory Mechanism (SSM).
The group mainly consists of major dealers active in sterling interest rate swap markets.  


The ECB has final supervisory authority, with Euro zone member states’ national supervisory authorities providing a supporting role. The ECB directly supervises the 120 'most significant' banks within each Euro zone member state.


The ECB is responsible for:
On 28 April 2017 the group anounced SONIA as its preferred near risk-free interest rate benchmark (RFR).
*Supervisory reviews
*On-site inspections and investigations
*Granting and withdrawing banking licences
*Assessing bank acquisitions
*Ensuring compliance with European Union prudential rules
*If required, setting higher capital requirements to counter financial risks.




In the United States, bank supervision is undertaken by the Federal Reserve System.
==See also==
*[[Benchmark]]
*[[LIBOR]]
*[[RFR WG]]
*[[Risk-free rates]]
*[[SONIA]]




== See also ==
==Other links==
* [[Capital adequacy]]
 
* [[Contingent capital]]
[[Media:Slaughter and May interest rate benchmarks.pdf| 2021: A Benchmark Odyssey, Practical Guidance for Treasurers on interest rate benchmarks, Slaughter and May]]
* [[European Central Bank]]
 
* [[Euro zone]]
[[Media:The_Treasurer_-_LIBOR_-_Goodbye_to_all_that.pdf| LIBOR: Goodbye to all that, The Treasurer]]
* [[Federal Reserve System]]
 
* [[Financial Services Authority]]
[https://www.bankofengland.co.uk/markets/sonia-benchmark SONIA and other benchmarks]
* [[Financial Conduct Authority]]
 
* [[CFTC]]
[https://www.fca.org.uk/news/statements/fca-statement-libor-panels FCA: Statement on LIBOR panels]
* [[Prudential Regulation Authority]]
 
[https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/2018/ARRC-Second-report ARRC: Second Report]

Revision as of 10:20, 17 April 2021

Risk-free interest rates.

The Working Group on Sterling Risk-Free Reference Rates was established in 2015 to support the development and adoption of alternative near risk-free benchmarks.

The group mainly consists of major dealers active in sterling interest rate swap markets.


On 28 April 2017 the group anounced SONIA as its preferred near risk-free interest rate benchmark (RFR).


See also


Other links

2021: A Benchmark Odyssey, Practical Guidance for Treasurers on interest rate benchmarks, Slaughter and May

LIBOR: Goodbye to all that, The Treasurer

SONIA and other benchmarks

FCA: Statement on LIBOR panels

ARRC: Second Report