Macro-prudential supervision should become a major objective of banking supervision, the Issing committee states. Other topics include a credit register, and the regulation and supervision of hedge funds and rating agencies.
Preparing for the G-20 meeting in London on 2 April, the German expert group issued its second report with recommendations to create a new financial order.
The report concentrates on topics such as a proposal for a risk map and a credit register, regulation and supervision of hedge funds and rating agencies, the problem of procyclicality, and the role of international institutions and fora.
Macro-prudential supervision should become a major objective of banking supervision, complementing the traditional micro- prudential supervision, the Issing committee states.
The group also proposes a centralized approach to setting up a standardized credit register that is capable of mapping domestic and cross-border exposures simultaneously. Furthermore, the report propose a mixture of direct and indirect hedge fund regulation, and regulation on rating agencies to re-build their reliability and credibility.
The report as well as the Issing plan of November last year are attached below.
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