Financial Stability Board Publishes Report on Implementation of G20 Financial Regulatory Reforms
10/16/2019The Financial Stability Board has published its annual report on the 2019 progress made in the implementation of the G20’s financial reforms. The FSB published an interim progress report in June 2019 at the meeting of G20 Finance Ministers and Central Bank Governors in Japan, which summarized FSB member jurisdictions’ progress to date in implementing the recommended reforms. The annual report provides further detail on the progress made and sets out areas for future work.
Key areas of progress include:
- Enhancing the resilience of financial institutions through the adoption of Basel III risk-based capital and liquidity rules and rules on higher loss absorbency requirements, which have been implemented by all 24 FSB jurisdictions;
- The ongoing implementation of Higher Loss Absorbency and reporting and disclosure requirements for global systemically important institutions as part of work to end too-big-to-fail institutions;
- Implementation of key areas of the G20’s OTC derivatives reform agenda, including trade reporting and comprehensive central clearing frameworks; and
- Ensuring the resilience of non-bank financial intermediation through the implementation of the FSB’s annual monitoring exercise and the International Organization of Securities Commission’s recommendations for money market funds.
Looking forward, the FSB believes that markets may not be sufficiently prepared for economic and financial risks from market developments, following a decade of very low interest rates. It also considers that technological innovation in finance could significantly change how the global financial system functions, which brings with it both benefits and risks. The FSB reiterates the need for an open and integrated global financial system to support efficient allocation of global savings across countries and international trade and investment.
View the FSB's Fifth Annual Report.
View details of the FSB's Progress Report on implementation of the G20's Financial Regulatory Reforms.
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