G20 published an official statement, also known as Communiqué, summarizing developments at the June meeting of the finance ministers and central bank governors in Fukuoka, Japan. G20 welcomed the work done by international bodies in the areas of cyber security, crypto-asset regulation, market fragmentation, correspondent banking, financial inclusion, sustainable finance, and assessment of the impact of regulatory reforms on SME financing.
The G20 leaders reaffirmed that they will continue to take joint action to strengthen international cooperation and frameworks. As per the statement, G20 remains committed to the full, timely, and consistent implementation of the agreed financial reforms. It will continue to evaluate the effects of these reforms and welcomes FSB's public consultation report on SME financing. G20 will continue to monitor and, as necessary, address vulnerabilities and emerging risks to financial stability, including with macro-prudential tools. While non-bank financing provides welcome diversity to the financial system, G20 will continue to identify, monitor, and address the related financial stability risks as appropriate. G20 also welcomed the reports from FSB and IOSCO on market fragmentation and looks forward to receiving progress updates in October, including on ongoing work. G20 committed to addressing the unintended, negative effects of market fragmentation, including through regulatory and supervisory cooperation. G20 will also continue to monitor and address the causes and consequences of the withdrawal of correspondent banking relationships and issues on remittance firms’ access to banking services.
The Communiqué states that G20 welcomed private-sector participation and transparency in the areas of sustainable finance and financial inclusion while reaffirming its commitment to applying the recently amended FATF standards to virtual assets and related providers for anti-money laundering (AML) and countering the financing of terrorism (CFT). It looks forward to the adoption of the FATF Interpretive Note and Guidance by the FATF at its plenary later this month. The IOSCO work on crypto-asset trading platforms related to consumer and investor protection and market integrity was also welcomed, along with the FSB work in this area. Recently, FSB has published a directory of crypto-asset regulators and a report on work underway, regulatory approaches, and potential gaps relating to crypto-assets. Also welcomed was the FSB report on decentralized financial technologies and their possible implications for financial stability, regulation, and governance, with focus on how regulators can enhance the dialog with a wider group of stakeholders. Finally, the Communiqué states that G20 will continue to step up efforts to enhance cyber resilience and welcomed progress on the FSB initiative to identify effective practices for response to and recovery from cyber incidents.
Related Link: G20 Communiqué
Keywords: International, Banking, Crypto-Assets, Financial Stability, Cyber Risk, SME Financing, Sustainable Finance, G20
Previous ArticleSEC Upgrades EDGAR System, No Longer Supports 2017 Taxonomy
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.