The recommendations cover liquidity risk management and governance, stress testing and scenario design, and collateral management practices of non-bank market participants, focussing on liquidity risks arising from spikes in margin and collateral calls.
As of the end of 2020, it was estimated that over $70 trillion of USD Libor exposures would remain outstanding beyond the cessation of remaining tenors after June next year.
The latest report from the Financial Stability Board finds although overall implementation is “well advanced”, annual progress remains incremental when it comes to completing the final steps.
Mark Carney outlines priorities for FSB which includes addressing vulnerabilities in asset management.