Reforms to the BBSW methodology As you may be aware, in recent months, the Council of Financial Regulators (CFR) has been conducting a consultation on possible reforms to the BBSW methodology. 3 I will run through the motivation for doing so, outline the key issues that have been raised in the consultation, and put forward some proposed reforms for market participants to consider.
Second, given the fact that banks need time to build up a new entity elsewhere, an equivalence decision would have to be taken quite soon to actually have a bearing on the location decisions of banks. Third, equivalence decisions are reversible, so banks would be forced to adjust to a new environment in the event that supervisory frameworks are no longer deemed equivalent.