Stability and resilience of the financial system

20.   Chapter 2 explains the recent events, including how the US sub-prime problems spread internationally, summarises the international work on the problems and sets out the Authorities' views.  These are a series of, mostly straightforward, proposals that the BSA supports, namely –

• additional work to improve stress testing
• co-operation with international partners on –
  • stress testing and risk management
  • liquidity regulation
  • consistent valuation and disclosure regarding asset backed securities
  • credit rating agencies.