Global regulators may expand the definition of a too-big-to-fail financial firm, signing up domestic lenders, clearing houses and insurers to capital rules designed for the world’s biggest banks, reports Bloomberg. The “framework should be in place for domestically systemically important banks by the end of the year,” Mark Carney, chairman of the Financial Stability Board, said on Tuesday after a meeting of the group in Basel. Mr Carney also said that the FSB was considering putting in place tougher rules for so-called shadow banks whose failure could harm the global financial system, but this work was less advanced than rules for systemic insurers. The FT reports that Mr Carney also announced that bankers who believe that rivals in other countries are violating new global restrictions on pay and bonuses will be able to complain to the FSB in future. Regulators from the two countries involved will investigate such allegations, and the FSB will track the complaints to see if they are clustered around particular countries, institutions or pay practices, Mr Carney said.

This entry was posted by Kate Mackenzie on Wednesday, January 11th, 2012 at 5:30 and is featured in The 6am Cut London (11 Jan 2012), The Lunch Wrap (11 Jan 2012) . Tagged with basel, Financial Stability Board, FSB, too big to fail. Edit this entry.