FSB published an update on the meeting of its Regional Consultative Group (RCG) for Asia. The meeting was hosted by Bank Negara Malaysia in Kuala Lumpur. The key topics of the discussion included design and use of financial-sector crisis simulation exercises, growth of nonbank financial intermediation, work on addressing climate change risks, and impact of regulatory reforms on small and medium enterprise (SME) financing.
Discussions at the meeting involved the following topics:
- Vulnerabilities and financial stability issues, including risks from global trends, including the resumption of upward prices in risky assets, loosening of credit standards, and increases in the cost of credit.
- Update on the FSB work program, particularly related to market fragmentation, financial innovation and fintech credit, and cyber incident response and recovery.
- Design and use of financial- sector crisis simulation exercises: members were briefed on lessons learned from simulation exercises in Hong Kong SAR and Singapore and exchanged views on how a regional exercise could be conducted.
- Growth of non-bank financial intermediation in Asia.
- Exchange of views on the impact of the reforms on SME financing: observations included the fact that the recent consultation report on effects of financial regulatory reforms on SME financing does not identify material and persistent negative effects on SME financing; benefits and challenges of fintech credit for SME financing were also discussed.
- Discussion on the financial risks, both physical and transition, resulting from climate change; analysis of recommendations put forward by the Network for Greening the Financial System; and exchange of views on the roles of financial institutions, central banks, and supervisors.
Related Link: Summary of Meeting
Keywords: International, Asia Pacific, Banking, RCG, Fintech, Financial Stability, Shadow Banking, Climate Change risks, FSB
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