FSB published its work program for 2020, which outlines work priorities for the coming year, including the key deliverables to the G20 Saudi Arabian Presidency. FSB will continue its work to finalize and operationalize the remaining elements of post-crisis reforms; monitor and assess the implementation of reforms; and evaluate their effects to ensure that reforms work as intended. FSB will also reinforce its forward-looking monitoring of developments to identify, assess, and address new and emerging vulnerabilities. The FSB Standing Committee on the Assessment of Vulnerabilities will, among other tasks, examine the financial stability implications of climate change.
The FSB work program items, which include key deliverables to the G20 Saudi Arabian Presidency, are:
- Fintech. FSB will continue to monitor financial innovation developments and assess their potential implications for financial stability. Complementing the recent report on bigtech in finance, FSB will report on the perspective of emerging market and developing economies on this topic. FSB will also take stock of the range of practices on the use of regtech and suptech. Additionally, FSB will finalize a toolkit of effective practices to assist financial institutions, supervisors, and authorities in supporting financial institutions for cyber incident response and recovery.
- Global stablecoins. The introduction of global “stablecoins” could pose a host of challenges to the regulatory community, including for financial stability. FSB will issue a public consultation on addressing regulatory issues of stablecoins in April.
- Cross-border payment systems. Digital innovation could improve the efficiency and inclusiveness of cross-border payment services, which are often considered to be slow and costly. In coordination with the Committee on Payments and Market Infrastructures and other relevant international organizations and standard-setting bodies, FSB will develop and deliver to the G20 a roadmap for how to enhance global cross-border payments.
- Interest rate benchmarks. Continued reliance of global financial markets on LIBOR poses risks to financial stability. Transition away from LIBOR by the end of 2021 requires significant commitment and sustained effort from both financial and non-financial firms across many jurisdictions. To improve understanding and increase awareness of the importance of ensuring timely transition, FSB will take stock of the implementation of benchmark reforms and report on remaining challenges to benchmark transition.
- Ongoing evaluation and resolution-related work. FSB will take forward its multi-year program for evaluating the effects of reforms under its Evaluation Framework. In 2020, this includes the completion of an evaluation of the effects of too-big-to-fail (TBTF) reforms for banks and the launch of an evaluation of the effects of money market fund reforms. FSB will also develop further guidance on financial resources to support central counterparty resolution, including on addressing non-default loss resolution scenarios and the treatment of CCP equity in resolution.
Keywords: International, Banking, Insurance, Securities, Regtech, Suptech, Too Big to Fail, Climate Change Risks, Cyber Risk, Benchmark Reforms, Stablecoins, FSB
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