FSB published its fourth annual report on the implementation and effects of the G20 financial regulatory reforms. Also published were the latest annual survey responses by the member jurisdictions on the implementation of other areas of reform, along with the summary tables and jurisdiction profiles on implementation progress. The report includes a dashboard that summarizes the status of implementation for priority reform areas across FSB jurisdictions.
The annual report highlights progress made in the reform agenda, as FSB pivots toward implementation and rigorous evaluation. Looking ahead, the report highlights some challenges in promoting a financial system that supports the G20 objective of strong, sustainable, and balanced growth, while preserving open and integrated markets and adapting to the rapid technological change. The report covers the following key issues:
- The substantial progress that has been made in implementing the key post-crisis financial reforms
- Contribution of the reforms to the core of the financial system becoming more resilient to economic and financial shocks
- Work of FSB to evaluate whether reforms are working as intended
- The benefits of cooperation between jurisdictions in the aftermath of the crisis
The report also includes key findings from the recently concluded FSB evaluations on the effects of G20 financial reforms on incentives to centrally clear over-the-counter (OTC) derivatives and infrastructure finance. The report, which will be delivered to the G20 Summit in Buenos Aires, calls for the support of G20 Leaders in implementing the agreed reforms, and reinforcing global regulatory cooperation. The report notes that regulatory and supervisory bodies should lead by example in promoting the timely, full, and consistent implementation of remaining reforms to Basel III, resolution regimes, OTC derivatives, and non-bank financial intermediation. This will support a level playing field and avoid regulatory arbitrage.
Frameworks for cross-border cooperation between authorities should be enhanced to build trust, allow for the sharing of information, and to preserve an open and integrated global financial system. The report also mentions that authorities should evaluate whether the reforms are achieving their intended outcomes, identify any material unintended consequences, and address these without compromising on the objectives of those reforms. Financial stability authorities should continue to contribute to the FSB’s monitoring of emerging risks and stand ready to act if such risks materialize.
- Press Release
- Annual Report (PDF)
- Survey Responses by Jurisdiction
- Jurisdictional Profiles
- Overview of Reported Implementation Status
Keywords: International, Banking, Insurance, Securities, Annual Report, G20, Basel III, OTC Derivatives, Regulatory Reforms, FSB
Previous ArticleIAIS Publishes Timeline for ComFrame Development and ICP Revisions
MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.
EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).