The Trump administration is confident an overhaul of US tax law will be finished by year-end, Treasury Secretary Steven Mnuchin says. "Whether health care gets done or doesn't get done, we're going to get tax reform done," he said.
The failure of regulators to end "too big to fail" is among factors that could lead to a breakdown in trust and collaboration among national authorities, market fragmentation and disruption of capital flows, said Mark Carney, governor of the Bank of England and chairman of the Financial Stability Board. Creating "a system of enhanced equivalence and mutual deference" could help avert those risks, he said.
The global market for blockchain technology is expected to grow to $5.43 billion by 2023, up from $228 million in 2016, with North America generating the most revenue from this technology, according to an Allied Market Research report. "Blockchain-based solutions are projected to be adopted earlier in some industries such as financial services and the supply chain industry as compared to many other industries," the report notes.
The International Monetary Fund is considering a yearlong funding scheme to aid in Greece's third bailout, government spokesman Dimitris Tzanakopoulos said. The question of IMF participation in the bailout has been one of several obstacles in negotiations that have gone on for months.
The Basel Committee on Banking Supervision's methodology for identifying global systemically important banks is up for review in April, and critics have argued against its accuracy. Among their criticisms is the methodology's vulnerability to foreign exchange volatility given that it uses the euro as its base currency.
While deepening European integration is not realistic, the European Stability Mechanism could be converted into a European monetary fund in short order, German Finance Minister Wolfgang Schaeuble said on the sidelines of International Monetary Fund meetings Thursday. Schaeuble also advocated for a tightening of the European Central Bank's monetary policies.
National undercutting of regulations to attract London businesses after the UK decided to leave the EU undermines the EU's stability, said Steven Maijoor, chairman of the European Securities and Markets Authority. "It is fine when financial centres attract business for being efficient, but it should not be on the basis of regulatory or supervisory standards," he said.
China has worked to open its bond market to foreigners, and international fund managers accept that Chinese onshore debt will become integral in fixed-income portfolios, but they hesitate to commit.
Market reforms show promise for China's willingness to integrate into the international financial system, while BlackRock's endorsement for onshore stocks' inclusion in MSCI's indices provides a steppingstone towards foreign acceptance.
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