Executive summary Purpose of study The use of collateral has become one of the most important and widespread risk mitigation techniques in wholesale financial markets. Financial institutions extensively employ collateral in lending, in securities trading and derivatives markets and in payment...

Executive summary Innovation in information technology (IT) has changed the way economic activity is carried out and organised. The eventual macroeconomic outcome of these changes and the macroeconomic profile of an IT-based economy are still uncertain. The major global correction in equity...

Summary Over the years, the Committee on the Global Financial System has been the designated central bank oversight body for the BIS international banking statistics. A guiding presumption of the Committee is that the statistics should be updated from time to time so as to ensure that they...

The collection of comprehensive and reliable statistics on derivatives markets was advocated by central banks in October 1992, when the Governors of the central banks of the Group of Ten (G-10) countries released the report entitled "Recent Developments in International Interbank Relations" (the...

Executive summary Foreign participation in the financial sectors of emerging market economies (EMEs) increased rapidly during the 1990s. It has continued to expand so far in this decade, on balance – although its pace fell somewhat following problems in Argentina in 2002 and the global...

Foreword In recent years, both the Committee on Payment and Settlement Systems and the Euro-currency Standing Committee have published reports on the implications of the very rapid growth of over-the-counter (OTC) derivatives markets in terms of risks to banks and other counterparties to those...

Introduction In May 2003, the Committee on the Global Financial System (CGFS) decided to establish a Working Group on Ratings in Structured Finance to explore the role of rating agencies in the rapidly evolving markets for structured finance instruments. To facilitate a better understanding of...

EXECUTIVE SUMMARY The purpose of this report is to enhance central banks’ understanding of the economic and monetary policy role of repo markets and the policy issues surrounding the development of sound and efficient repo markets. The report is divided into three chapters. The first chapter,...

Preface The Committee on the Global Financial System (CGFS), known until 1999 as the Euro-Currency Standing Committee, serves as a discussion forum for the central bank community on financial stability questions. The CGFS has frequently been asked to examine the potential implications of...

INTRODUCTION AND SUMMARY Following its March 1999 meeting, the Committee on the Global Financial System formed a working group, chaired by Karen Johnson of the Board of Governors of the Federal Reserve System, to examine the events surrounding the market stresses in many international financial...