ContextIn presenting the Report, FSB Chair Andrew Bailey reflects on current challenges to multilateralism and how the FSB will remain fit for purpose.
Why it mattersThe Financial Stability Board Chair's yearly overview of global financial risks and the FSB's priorities.
Problems raised
The global landscape shifted sharply during the year, raising new risks for financial stability.
Leadership and priorities inside the FSB were changing at the same time.
Vulnerabilities outside the banking sector keep growing.
Solutions proposed
Keep the FSB focused on a narrower set of priority work streams.
Strengthen international cooperation among member authorities.
Present results more clearly through a revamped annual report.
ContextIn a keynote speech at the FSB Payments Summit, Andrew Bailey, Chair of the Financial Stability Board, sets out what more the private sector, public authorities and international bodies need to do to achieve the G20's goals on cross-border payments.
Why it mattersAdmits the G20 cross-border payment targets are lagging and assigns tasks to the private and public sectors.
Problems raised
Cross-border payments remain slow, costly and opaque.
Progress towards the G20 payment targets is lagging.
Public and private efforts are not well coordinated.
Solutions proposed
Build a closer partnership between the public and private sectors.
Prioritise a small number of deliverable actions.
Give clear tasks to firms, authorities and international bodies.
ContextRemarks by the outgoing Chair of the Financial Stability Board; the FSB coordinates financial regulation for the G20 and must keep reforms on track as political support weakens.
Why it mattersThe outgoing FSB chair points to data gaps around non-banks, crypto and climate as the main blind spots in global oversight.
Problems raised
Data gaps hide risks in the financial system.
Non-bank finance, crypto-assets and climate change create new vulnerabilities.
Risk management practices have not kept pace.
Solutions proposed
Close data gaps to support monitoring and policy design.
Keep strengthening risk management across financial firms.
Deepen cross-border cooperation on implementation.
ContextRemarks at the 93rd plenary of the Group of Thirty, a forum of senior financiers and academics; the FSB coordinates financial regulation for the G20 and watches risks outside the banking sector.
Why it mattersThe FSB chair warns that stablecoins could bring hidden risks into the core of the financial system.
Problems raised
Financial innovation can outpace regulation.
Stablecoins may exploit gaps in oversight.
Hidden risks can enter the core financial system.
Solutions proposed
Apply the principle of same activity, same risk, same regulation.
Close regulatory gaps for stablecoins and crypto-assets.
ContextRemarks by the Chair of the Financial Stability Board; the FSB coordinates financial regulation for the G20 and studies how artificial intelligence could affect stability.
Why it mattersThe FSB chair warns that AI could concentrate risk among a few providers and encourage herding.
ContextRemarks by the Chair of the Financial Stability Board; the FSB coordinates financial regulation for the G20 and leads its plan for cheaper and faster cross-border payments.
Why it mattersKnot urges linking national instant payment schemes so money moves abroad faster and cheaper.
ContextRemarks by the Chair of the Financial Stability Board; the FSB coordinates financial regulation for the G20 and wants post-crisis reforms fully applied.
Why it mattersKnot calls for a macroprudential approach to non-bank finance and buffers against cyclical risks.
ContextRemarks by the Chair of the Financial Stability Board; the FSB coordinates financial regulation for the G20 and sets its work plan on current risks.
Why it mattersKnot sets the FSB's priorities, including too-big-to-fail and non-bank risks.
ContextOpening remarks delivered by Klaas Knot, Chair of the FSB, at a press conference ahead of the G20 Finance Ministers and Central Bank Governors’ Meeting in Bali, Indonesia.
