The Financial Stability Board (FSB) has published a letter from its Chair, Klaas Knot, to G20 Finance Ministers and Central Bank Governors ahead of their meeting on 26-27 February. The letter notes that shifting financial conditions and geopolitical uncertainty call for continued vigilance on financial stability. The FSB has developed extensive reforms in recent years to enhance resilience by addressing key financial system vulnerabilities. These reforms target not only safety and soundness, but also support innovation by providing clarity on policy approaches for emerging topics like crypto-assets.
The letter notes that with key reforms developed or nearing completion, the FSB is shifting toward a greater focus on the promotion and monitoring of implementation. This work will take a prominent role in 2025 as the FSB undertakes a strategic review of 15 years of monitoring reform implementation. The review will provide insights into the effectiveness of the monitoring of post-global financial crisis regulatory reforms and identify areas where the FSB can make improvements in the tools it uses to ensure the consistent, global implementation of agreed reforms. The FSB will deliver an interim report on this work to the G20 in October.
The FSB will also remain proactive in assessing financial system vulnerabilities. This includes work to address data and information gaps in non-bank financial intermediation, which have impeded the effective assessment of relevant vulnerabilities and the formulation of proportionate policy responses.
The letter sets out in more detail the work underway this year at the FSB and its relevance to international financial stability.
