FSB Publishes Work Program for 2021

As explained in the work program for 2021, the following are the key areas of work during the year:

• International cooperation and coordination related to COVID-19. FSB, through its cross-sectoral membership, continues to promote financial stability during market stress related to COVID-19. Work on COVID-19 responses will continue to be in a flexible mode, including on specific COVID-19 related vulnerabilities and policy issues, and be adjusted as needed. As a new project, FSB will work with standard-setting bodies to assess initial lessons learnt from COVID-19 for financial stability, and report them to the G20.
• Central counterparty (CCP) resilience, recovery, and resolvability. FSB will, in cooperation with CPMI and IOSCO, consider the need for, and develop as appropriate, international policy on financial resources in recovery and resolution to further strengthen the resilience and resolvability of CCPs. This would include assessing whether any new types of prefunded resources would be necessary to enhance CCP resolvability.
• Cross-border payments. In 2021, FSB will have to complete a number of actions in the roadmap, including the development of quantitative targets for the roadmap; it will also take stock of the data frameworks and explore the scope for, and obstacles to develop, a global digital Unique Identifier. Moreover, FSB will continue discussions on regulatory and supervisory approaches with respect to global stablecoins.
• Climate change and sustainable finance. FSB will explore ways to promote globally comparable, high-quality, and auditable standards of disclosure based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD); it will also work on regulatory and supervisory approaches to addressing climate risks at financial institutions. Moreover, FSB will report to the G20 Finance Ministers and Central Bank Governors meeting on progress in the area of the financial implications of climate change and sustainable finance in July 2021. 
• Interest rate benchmarks. FSB will continue to support transition away from LIBOR to more robust benchmarks by the end of 2021 and report on progress to the G20. 
• Cyber and operational resilience. FSB will explore the scope for convergence in the regulatory reporting of cyber incidents and the need for revisions to the FSB Cyber Lexicon. FSB will take stock of current practices across sectors and jurisdictions regarding the reporting of cyber incidents for regulatory purposes and explore if and where greater convergence of reporting practices could be achievable. The Standing Committee on Supervisory and Regulatory Cooperation (SRC) will hold a virtual outreach with external stakeholders on its November 2020 discussion paper on regulatory and supervisory issues related to outsourcing and third-party relationships in early 2021.
• Financial stability surveillance framework. FSB will resume the project to develop a comprehensive and methodical surveillance framework for assessing financial system vulnerabilities, including by identifying new and emerging risks to financial stability, which was suspended as part of the reprioritization of work in light of COVID-19 crisis.

Related Links

• Press Release
• Work Program (PDF)

Keywords: International, Banking, Work Program, COVID-19, Climate Change Risk, Sustainable Finance, ESG, Interest Rate Benchmark, Cyber Resilience, CCP, Resolution Framework, FSB