Financial Stability Board and Risk-free asset: Difference between pages

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''Financial markets supervision''.
''Investment management - risk appetite - flight to quality - rates of return - risk-free rate of return - risk assets.''


(FSB).  
For practical investment management and portfolio management purposes, a risk-free asset is considered to be one on which the expected rate of investment return is so likely to be achieved, that it can be treated as near-enough risk free for the purpose.


The Financial Stability Board was established by the G20 to coordinate, at the international level, the work of national financial authorities and international standard setting bodies (SSBs).  
The usual example is short-dated debt obligations of a low-risk domestic central government.


For example in the United States, short-dated obligations of the US Treasury.


The Board is established to:


# Develop and promote the implementation of effective regulatory, supervisory and other financial sector policies, and
In this context, all assets that are not risk-free assets, are classed as ''risk assets''.
# Thereby promote international financial stability.  


The exact boundary between risk assets and risk-free assets can vary, depending on the purpose of the classification.


The FSB consists chiefly of central banks, government departments and other national financial and monetary authorities, international standard setting bodies and other groupings.


In the event of future crises, the FSB stands ready to coordinate cross-border crisis management.
== See also ==
* [[Benchmark]]
* [[Capital asset pricing model]]
* [[Credit spread ]]
* [[Expected rate of return]]
* [[Flight to quality]]
* [[Gilts]]
* [[Interest rate risk]]
* [[Investment management]]
* [[LIBOR]]
* [[Market risk premium]]
* [[Portfolio]]
* [[Rate of return]]
* [[RFR]]
* [[Risk appetite]]
* [[Risk asset]]
* [[Risk-free rate of return]]
* [[Risk-free rates]]
* [[Risk-off]]
* [[Risk-off asset]]
* [[Risk-on]]
* [[Treasury]]


 
[[Category:Accounting,_tax_and_regulation]]
== See also ==
[[Category:Financial_products_and_markets]]
* [[Basel Committee on Banking Supervision]]
[[Category:Risk_frameworks]]
* [[Basel III]]
* [[EDTF]]
* [[Moral hazard]]
* [[Standard Setting Body]]
* [[G20]]
* [[MCT]]

Latest revision as of 05:49, 10 February 2024

Investment management - risk appetite - flight to quality - rates of return - risk-free rate of return - risk assets.

For practical investment management and portfolio management purposes, a risk-free asset is considered to be one on which the expected rate of investment return is so likely to be achieved, that it can be treated as near-enough risk free for the purpose.

The usual example is short-dated debt obligations of a low-risk domestic central government.

For example in the United States, short-dated obligations of the US Treasury.


In this context, all assets that are not risk-free assets, are classed as risk assets.

The exact boundary between risk assets and risk-free assets can vary, depending on the purpose of the classification.


See also