IMF publishes global financial stability report - old challenges remain, new risks emerge

The International Monetary Fund published its global financial stability report yesterday: see here (pdf). An overview is available here. The report calls for stronger policies to reduce financial fragmentation in the euro area and identifies the threat to financial stability associated with the relaxation of monetary policy.

Europe: IMF discussion note on the banking union

The International Monetary Fund has published a staff discussion note concerning the proposed banking union, together with accompanying technical notes: see, respectively, here (pdf) and here (pdf). It is stated, amongst other things, that the European Council's agreement on the single supervisory mechanism in December was an important step but raises challenges that should not be underestimated.

UK: IMF publishes UK Financial System Stability Assessment

The International Monetary Fund published its assessment of the stability of the UK's financial system earlier this week: see here (pdf). The IMF's report recommends, amongst other things, that the oversight of investment banking activities needs to be improved in the new regulatory structure.

Isle of Man: consultation on changes to the Financial Services Act 2008

The Isle of Man's Financial Supervision Commission (FSC) has published a consultation paper - see here (pdf) - in which it sets out proposed changes to the Financial Services Act 2008 (here, pdf) and Collective Investment Schemes Act 2008 (here, pdf). Some of these changes are based on recommendations made by the International Monetary Fund, including adding to the FSA's statutory objectives (within Section 2 of the FSA 2008) the mitigation of systemic risk in the financial system.