G20's FSB recommends non-banks hold more cash and plan for collateral spikes.

G20's financial watchdog suggests non-banks like insurers, hedge funds, family offices, and commodities traders should hold more cash and plan for spikes in collateral used for derivatives positions. Regulators aim to prevent liquidity injections into markets following crises like the COVID-19 pandemic or Archegos collapse. The FSB's recommendations focus on risk management, governance, stress-testing, and collateral.

April 17, 2024
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