G20 Publishes Communiqué on Its February Meeting in Indonesia
G20 published an official statement, also known as the Communiqué, summarizing developments at the February meeting of the finance ministers and central bank governors in Jakarta, Indonesia. G20 welcomed the work done by international bodies in the areas of financial resilience, central bank digital currencies, sustainable finance instruments, climate-related financial risks, crypto-asset markets, and money laundering and terrorist financing.
The G20 leaders reaffirmed that they will continue to monitor major global risks, including from geopolitical tensions that are arising, along with the macroeconomic and financial vulnerabilities. G20 reiterated its commitment to strengthen long-term financial resilience of the international financial architecture, including promoting sustainable capital flows and developing local currency capital markets. It will continue its discussion on Central Bank Digital Currencies, to further understand their macro-financial implications for the international monetary and financial system, including for spillovers and capital flows. The Communiqué states that G20 will scale up sustainable finance markets and improve access for countries and firms, including for developing economies and small and medium-size enterprises (SMEs), in an affordable way. G20 will take forward actions of the G20 Sustainable Finance Roadmap, which includes reporting and assessment of priorities set out in the 2022 G20 Sustainable Finance Report. In addition, Sustainable Finance Working Group (SFWG) will develop a voluntary, non-binding policy toolbox highlighting ways to scale up sustainable finance instruments (SFI), in cooperation with other relevant G20 working groups, with a focus on improving accessibility and affordability. Collaboration between the government and authorities will be improved to develop an ecosystem that maintains long-term SFI continuity in the market.
G20 also addressed work of the Financial Stability Board (FSB) on exit strategies and scarring effects in the financial sector; supported the continued implementation of the G20 Roadmap for Enhancing Cross-Border Payments, including monitoring progress toward the roadmap's quantitative targets; and looks forward to further progress in taking forward the actions of the FSB Roadmap for Addressing Climate-Related Financial Risks. G20 welcomes the FSB's updated assessment of financial stability risks from fast-evolving crypto-asset markets. It encouraged FSB and other standard-setting bodies to monitor and share information on regulatory and supervisory approaches to unbacked crypto-assets, stablecoins, decentralized finance, and other forms of crypto-assets and to address any gaps and arbitrage, including by recommending coordinated and timely policy actions to preserve global financial stability. It also welcomed the continued focus of the Financial Action Taskforce on the risks and opportunities of the digital transformation for preventing and combating money laundering, terrorist financing, and proliferation financing.
Related Links:
Keywords: International, Banking, Sustainable Finance, Climate Change Risk, Crypto Assets, CBDC, ML TF Risk, Stablecoins, Cyber Risk, G20
Featured Experts
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
James Edwards
James leads the initiative to model the risk implications of climate change for corporates, SMEs, and sovereigns.
Previous Article
JFSA to Set Up Subcommittee on ESG Data IssuesRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
NGFS Report Explores Quantification of Climate Risk Differentials
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
EC Publishes Results on Review of Web Accessibility Directive
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
MAS Consults on Adjustment Spreads for Conversion of SOR Contracts
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
