This paper evaluates the model risk of models used for forecasting systemic and market risk. Model risk, which is the potential for different models to provide inconsistent outcomes, is shown to be increasing with and caused by market uncertainty. During calm periods, the underlying risk...

The report concludes that CRT activity (defined as indicated in the context of credit derivative-related transactions) has been developing at a rapid rate characterised by significant product innovation, an increasing number of market participants, growth in overall transaction volumes, and...

The attached report responds to a request by the Financial Stability Forum (FSF) for the Joint Forum to undertake a review of credit risk transfer (CRT) activity. ... The report concludes that CRT activity (defined as indicated in the context of credit derivative-related transactions) has been...

In June 1999, a Multidisciplinary Working Group on Enhanced Disclosure (Fisher II working group) was established to provide advice to its sponsoring organisations1 on steps that would advance the state of financial institutions disclosures of financial risks in order to enhance the role of...

This report summarises the findings of the Joint Forum’s Working Group on Risk Assessment and Capital and builds on the previous efforts of the Working Group to better understand approaches to the management of major individual risks in the banking, insurance, and securities sectors...

The Joint Forum of banking, securities, and insurance supervisors has been engaged in an effort to better understand risk management practices cross all three sectors. The purpose of this paper is to foster dialogue amongst financial firms and supervisors around issues related to the transfer of...

The Joint Forum of banking, securities, and insurance supervisors has been working to enhance mutual understanding of issues related to the supervision of firms operating in each of the respective sectors. This report responds to the parent committees’ request to compare approaches to risk...

This article examines the 2007 banking crisis from an interdisciplinary and, in particular, social constructivist perspective to identify its structural and systemic causes. After presenting and explaining a wide meta-theoretical framework that can accommodate different understandings of...

The 2007 Article IV Consultation with the Kingdom of the Netherlands explains fiscal policy and financial sector issues. Improvements in the macroeconomic and business environments and technological innovation have contributed positively to Dutch competitiveness. Executive Directors emphasized...

In South Africa, long-term insurers experienced some strains during the financial crisis, but there were no crisis-related failures. The capital markets suffered sharp declines but no systemic failures. The three standards assessments have found the regulatory system fundamentally sound. The...