In 2016, the Basel Committee on Banking Supervision (BCBS) agreed on several reforms, including the treatment of interest rate risk in the banking book, revisions to the securitisation framework, and a standard for the regulatory capital treatment of banks’ investments in total lossabsorbing capacity. It also issued public consultations on the regulatory treatment of accounting provisions and Pillar 3 disclosure requirements.
Undoubtedly, the evolution of the financial sector in the direction envisaged would need to be accompanied by enhanced regional regulation and supervision to minimize the risk of cross-border contagion. The final piece of the financing puzzle should come from the further development and integration of the regional stock market. A first step, involving the cross-listing of twelve securities has already been taken.