Moody’s warns on G20 plans for SIFIs
The Financial Stability Board (FBS)’s proposals at the G20 meeting last week to reduce moral hazard posed by systematically important financial institutions (SIFIs) could bring risks for senior creditors, credit rating agency Moody’s has said.
In a note published on Monday, Moodys said that because the FSB proposals would make it easier to impose losses on unsecured and uninsured creditors of large, globally interconnected banks, the announcements are credit negative for senior creditors of such banks.
Moodys added, however, that the G20s endorsement of
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