Lecture series
Who writes the global rules: Basel Committee, FSB, FATF, IOSCO
The international bodies that write the standards behind banking, anti-money laundering, securities and payments rules, why their standards have no legal force of their own and still shape the rules of almost every market, who from Southeast Asia sits at the table, and how a lender can read the assessments that show how far a market follows them. Five lessons.
5 of 5 lessons published. Lesson 1 is free to read.
Listen to this course
Now playing
Press play to start
- 01How global standards work: who writes them, who sits at the table and how they reach a marketMuch of what a bank or a lender must do, from how much capital it holds to how it checks a customer's identity, starts as a standard written by an international body that has no power to enforce it. This lesson explains why these standards still matter, which bodies write which standards, who from Southeast Asia takes part, how a standard becomes a national rule, and how markets that do not sit at the table are assessed.
- 02The Basel Committee: capital, liquidity and the Core Principles for banking supervisionThe Basel Committee writes the standards that decide how much capital a bank holds against its loans, how much liquidity it keeps for a bad month, and what a good banking supervisor does. This lesson explains where the committee came from, how the capital ratio and risk weights work, with a worked example for a retail loan book, the two liquidity ratios, the Core Principles, and how far markets outside the committee follow its standards.
- 03The Financial Stability Board: coordination, resolution and peer reviewsThe Financial Stability Board does not write most standards itself. It coordinates the bodies that do, reports to the G20, and owns the international standard for dealing with a failing financial institution. This lesson explains where it came from and how it is run, what an effective resolution regime contains, how the largest banks are identified and made to hold loss-absorbing capacity, with a worked example, how peer reviews work, and why its monitoring of non-bank finance matters to lenders.
- 04FATF: the anti-money laundering standard, mutual evaluations and what they mean for lendersThe anti-money laundering checks a lender makes, from verifying a new customer's identity to reporting a suspicious payment, trace back to the FATF Recommendations. This lesson explains where the Financial Action Task Force came from, what its forty Recommendations ask of financial institutions, why the standard now asks for proportionate rather than blanket measures, how mutual evaluations rate a market, with a worked example, and what the FATF lists mean for a lender.
- 05IOSCO and the other standard setters, and how to read an assessment of a marketBanking and anti-money laundering are not the only fields with global standards. Securities markets, insurance, payment systems and deposit insurance each have their own standard setter and their own principles. This lesson explains what IOSCO's principles ask and why they can reach a lender, what the other standard setters cover, how the IMF and the World Bank turn these standards into published assessments, how the rating scales differ, and how to read an assessment of a market, with a worked example.
Quiz and certificate 9 questions; those on lesson 1 are free to try. Read every published lesson and score 80% or more for a certificate of completion.
Take the quizThe international financial institutions: IMF, World Bank, ADB and BIS (course) →Southeast Asia in the world (course) →Compare lending rules →All courses →