FSB Publishes Summary of October Meeting of RCG for Americas

The following are the key highlights of the discussion:

• The group received an update on the ongoing work of FSB and its plans for 2020. This included evaluation of the effects of the implemented post-crisis regulatory reforms. The FSB work on interest-rate benchmark reforms was also discussed, with the group agreeing on the importance of sustained effort by firms in many jurisdictions to transition away from LIBOR.
• The members discussed work by the RCG working group on non-bank financial intermediation; the working group compiles annual data on the size of the financial intermediation activity in the region and examines the associated policy issues.
• Members discussed stablecoins and their implications for financial stability, agreeing that stablecoin projects—particularly those of potentially global reach and magnitude—need to meet the highest regulatory standards and be subject to appropriate prudential supervision and oversight.
• The group discussed the ongoing work of FSB to develop effective practices for cyber-incident response and recovery, on which the FSB will consult in early 2020.
• The group also expressed support for a set of recommendations that have been developed by a working group of FSB and RCG members for enhancing the effectiveness of RCGs as an outreach and feedback mechanism. The recommendations will be reviewed by the FSB Plenary for adoption in November.
• The members discussed global and regional financial vulnerabilities, including elevated debt levels for many private- and public-sector borrowers in advanced economies. The group stressed the importance of authorities designing integrated policy responses.

The RCG for Americas is co-chaired by Alejandro Díaz de León-Carrillo, the Governor of Bank of Mexico, and Cindy Scotland, the Managing Director of Cayman Islands Monetary Authority. The members of RCG for Americas include financial authorities from Argentina, Bahamas, Barbados, Bermuda, Bolivia, Brazil, British Virgin Islands, Canada, Cayman Islands, Chile, Colombia, Costa Rica, Guatemala, Honduras, Jamaica, Mexico, Panama, Paraguay, Peru, Trinidad and Tobago, the United States of America, and Uruguay.

Related Link: Meeting Update

Keywords: International, Americas, Banking, RCG, NBFI, Stablecoin, Financial Stability, Regtech, Cyber Risk, Interest Rate Benchmarks, FSB