Financial Stability

Overview:

Financial stability and the topics of liquidity risk management and risks related to the use of leverage are high on the agenda of global and regional supervisory bodies, following COVID-19-related market events. AIMA has been engaging globally on this topic, sharing insights and information with the Financial Stability Board (FSB), the International Organization of Securities Commissions (IOSCO), the European Systemic Risk Board and other regional and local supervisory authorities and policy-makers.

Liquidity

Liquidity risk management is a key component of financial stability. AIMA believes that robust liquidity risk management tools already exist but that these should be enforced continuously and effectively.

Leverage

AIMA engages with policy-makers to provide information on how our members make use of leverage and to ensure supervisors have the right dataset to appropriately assess the potential risk stemming from leveraged positions.