FSB Publishes Update on Meeting of RCG for Europe
FSB published a summary of the meeting of its Regional Consultative Group (RCG) in Europe. The meeting was hosted by National Bank of Romania on May 07, 2019 in Bucharest. The key topics of discussion were innovation in financial industry, possible policy responses to the identified financial vulnerabilities, an update on the FSB work program for 2019, and strengthening of the FSB outreach through RCGs.
The following are the key highlights of the discussions:
- The RCG members discussed implications of the growing use of artificial intelligence, machine learning, and big data for the regulation and supervision of the financial system. Members explored risks and opportunities that these innovations could entail for financial stability.
- They examined the potential impact of the global and regional financial vulnerabilities on European economies. The group also exchanged views on possible policy responses, including assessments of potential vulnerabilities linked to high global indebtedness and more specifically to the markets for leveraged loans and collateralized loan obligations (CLOs). The meeting considered the steps authorities are taking to address the identified risks.
- The group also received an update on the work program of FSB and the deliverables to the June G20 meetings in Japan. The work program in 2019 is focused on new and emerging vulnerabilities, including potential financial stability issues arising from market fragmentation and from fintech and how these issues may be addressed.
- Finally, members discussed ways to enhance the effectiveness of RCG groups. As part of the broader efforts by FSB to strengthen external stakeholder outreach, the discussion will help to identify the ways in which non-member jurisdictions of FSB can effectively contribute to the work of FSB and provide feedback on its direction.
The RCG Europe is co-chaired by Luigi Federico Signorini, Deputy Governor, Bank of Italy and Marek Mora, Deputy Governor, Czech National Bank. The membership of RCG for Europe includes financial authorities from Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, Ukraine, United Kingdom and the Group of International Finance Center Supervisors. EC, ECB the ECB Banking Supervision also attended the meeting.
Related Link: Meeting Update
Keywords: International, Europe, Banking, RCG, Fintech, Regtech, Work Program, Financial Stability, FSB
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