Definitions Flashcards
(FSB) Financial Stability Board
The board is based in Basel, Switzerland.
It was established after the G20 London summit in April 2009 as a successor to the (FSF) Financial Stability Forum.
Established to provide coordination of national financial authorities and international standard-setting bodies.
Members are from G20 nations, World Bank, International Monetary Fund, Bank for International Settlements. is an international body that monitors and makes recommendations about the global financial system.
(BIS) Bank for International Settlements
Established in 1930 to deal with aftermath of WWI financial issues. Based in Basel, Switzerland. World’s oldest international financial institution which fosters cooperation among international central banks and other agencies in pursuit of monetary and financial stability.
(KYC) Know Your Customer
Anti-Money laundering measure to make it harder for criminals to process fraudulent transactions that undermine the security of the banking system and to launder money that is used to finance terrorism and crime.
Deposit Insurance/Guarantee
To protect the assets of smaller deposit customers who would be most harmed by a bank failure. Increase overall confidence in the banking system.
A “bank run” may force a bank out of business if depositors all request their money at once, which happened during Great Depression.
Shadow Banking System
Consequence of 2007-09 global financial crisis. Nonbank financial institutions that facilitate the extension of credit or take deposits outside of the strict prudential bank supervisory regime.
- Asset managers, hedge and mutual funds.
- Derivatives beyond oversight of financial regulators
