Financial Stability Board Publishes Progress Report on G20 Financial Regulatory Reforms
06/25/2019The Financial Stability Board has published a progress report summarizing FSB member jurisdictions’ progress in implementation of the G20’s recommended financial reforms. The G20’s program of financial reforms was launched in 2009 to mend the weaknesses that led to the global financial crisis. The FSB is the body responsible for delivering the G20’s proposed changes and its latest report sets out progress made since the FSB’s last report in November 2018, as well as areas where further work is required.
The Report notes that the financial regulatory framework called for by the G20 is now largely in place but observes that implementation has been uneven across reform areas. In particular, the FSB reports that:
- The adoption of the core Basel III elements has generally been timely, although the introduction of the leverage ratio and finalized reforms to the capital framework is less uniformly well-advanced;
- The application of the policy framework to global systemically important institutions is at an advanced stage although work remains to achieve effective resolution regimes;
- The over-the-counter derivatives market reforms are well-developed, although implementation has lagged since 2018; and
- Non-bank financial intermediation reform remains at an earlier stage than other areas.
The Report was issued at the meeting of G20 Finance Ministers and Central Bank Governors in Japan in June this year, where topics included the development of non-bank financing and market fragmentation. The FSB will publish a full progress report on the implementation and effect of the reforms in October 2019. The FSB also published an open letter to G20 leaders updating them on the progress of the reforms and highlighting areas for improvement.
View the FSB's Progress Report.
View the FSB's letter to G20 leaders.
View details of the Communique on the June 2019 G20 meeting.
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