The Financial Stability Board (FSB) has published a letter, along with a press release and webpage, from its Chair, Klaas Knot, to G20 finance ministers and central bank governors ahead of their meeting on 23-24 April. The letter addresses the progress made in tackling global challenges to financial stability and outlines priorities for the future to prevent instability, enhance the resilience of the global financial system and support growth. The key areas of progress are:
- Ensuring financial stability through periods of turmoil. The FSB will continue to learn from vulnerabilities caused by previous events such as the banking stress of March 2023 and the COVID-induced market turmoil of March 2020, to ensure effective monitoring of the financial system. The FSB recognises the importance of strengthening the resilience non-bank financial intermediation (NBFI) and aims to deliver policy recommendations in July to the G20, to address financial stability risks arising from leverage in NBFI.
- Building a financial system that is fit for the future. The FSB will: (i) continue to advance digitalisation in finance and present a thematic review of its global regulatory framework for crypto-asset activities to the G20 later this year; (ii) work to address cyber risks, culminating with the release of the Format for Incident Reporting Exchange (FIRE); (iii) enhance cross-border payments through encouraging the implementation of the G20 roadmap; and (iv) tackle climate-related financial risks through its climate roadmap and framework which assesses climate-related vulnerabilities.
- Monitoring the implementation and effectiveness of reforms. The FSB emphasises that it is not enough to just develop policies and calls on authorities to remain committed to implementing the agreed international reforms to preserve financial stability in an evolving risk environment and avoid fragmentation. Return to main website.
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