FSB Releases Update on Meeting of Regional Consultative Group for Asia

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