FSB issued a statement that it is actively cooperating to maintain financial stability during market stress related to COVID-19. FSB encourages authorities and financial institutions to make use of the flexibility within existing international standards to provide continued access to funding for market participants and for businesses and households facing temporary difficulties from COVID-19. FSB also encourages authorities and financial institutions to ensure that capital and liquidity resources in the financial system are available where they are needed.
The global financial system today is in a better position to withstand shocks, maintain market functioning, and sustain the supply of financing to support the real economy as a result of post-crisis reforms, including the formation of international coordination mechanisms like FSB. Many members of FSB have already taken action to release available capital and liquidity buffers, in addition to actions to support market functioning and accommodate business continuity plans. FSB represents a broad and diverse membership of national authorities, international standard-setters, and international bodies. FSB members, including the international standard-setting bodies, are cooperating closely. They will continue to coordinate action, including financial policy responses in their jurisdictions, to maintain global financial stability, keep markets open and functioning, and preserve the capacity of the financial system to finance growth.
Related Link: Press Release
Keywords: International, Banking, COVID 19, Financial Stability, Basel III, Post-Crisis Reforms, Regulatory Capital, Liquidity Risk, Systemic Risk, FSB
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