FSB Chair Issues Letter on Implementation of G20 Reforms
FSB published a letter from the Chair Randal K. Quarles to G20 Finance Ministers and Central Bank Governors, ahead of the meetings in Washington D.C. in October. The letter notes that the development of post-crisis reform policies is nearly complete and implementation is well underway; however, the FSB mission is far from complete. Implementation progress on the agreed G20 reforms remains uneven across key reform areas and FSB is in the process of evaluating that reforms are working as intended. Looking ahead, authorities need to be ready to address the evolving risks to global financial stability, be they related to the current downside risks to growth and uncertainties related to Brexit, or the structural changes in the financial system.
The letter highlights three areas of the FSB work:
- Ensuring resilience in the face of new risks. As part of this workstream, FSB is conducting an in-depth analysis of the markets for leveraged loans and collateralized loan obligations. FSB is also assessing the financial stability implications of structural changes in the financial system, including non-bank finance and technological innovation.
- Addressing potential financial stability issues from global stablecoins. FSB has formed a working group, to inform regulatory policy approaches that harness the benefits of financial innovation, while containing associated risks for the financial system, and to advise on multilateral responses as necessary. FSB will submit a consultative report to the G20 in April and a final report in July 2020.
- Promoting a financial system that supports strong and sustainable global growth. Following its June report on addressing instances of harmful market fragmentation, FSB has submitted a progress report to the G20 on its further work in this area. FSB is also taking forward its multi-year program of rigorous evaluation of post-crisis reforms. The evaluation of the effects of the reforms on small and medium-size enterprises is nearing completion, while the evaluation of the effects of too-big-to fail reforms for banks is underway.
Related Links
Keywords: International, Banking, Securities, Post-Crisis Reforms, G20, Financial Stability, Stablecoins, Too Big to Fail, Fintech, FSB
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
EIOPA Publishes Q&A on Regulations in November 2019Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
