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• Published on 24 July 2016
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FSB Chair updates G20 Finance Ministers and Central Bank Governors on progress in advancing the FSB’s 2016 priorities

The Financial Stability Board (FSB)  published a letter from Mark Carney, Chair of the FSB, which was sent to G20 Finance Ministers and Central Bank Governors ahead of their meeting in Chengdu on 23-24 July.

In the letter, the FSB Chair notes that, thus far this year, the global economy and financial system have weathered two spikes in uncertainty and risk aversion. In both cases, the global financial system continued to function effectively, and the financial system dampened aftershocks from these events rather than amplifying them. This resilience in the face of stress demonstrates the enduring benefits of G20 post-crisis reforms. It also reinforces the importance of finishing the job of implementing these reforms.

The letter outlines the progress the FSB is making in advancing its priorities for 2016:

• Promoting a coordinated programme of reforms to deliver resilient sources of market-based finance, including addressing structural vulnerabilities associated with asset management activities;
• Developing robust financial market infrastructure, including assessing policies on central counterparty resilience, recovery and resolvability, and recommending any necessary improvements; and
• Supporting effective macroprudential arrangements, by drawing lessons from national experiences of the practical application of macroprudential policy frameworks and tools working in partnership with the International Monetary Fund and Bank for International Settlements.

Alongside these current priorities, the FSB is also:

• Pursuing the full and consistent implementation of post-crisis reforms, while addressing material unintended consequences;
• Addressing new and emerging vulnerabilities in the financial system, including those associated with conduct, correspondent banking and climate change; and
• Monitoring the potentially systemic implications of financial technology innovations, and the systemic risks arising from operational disruptions.

Re-disseminated by The Asian Banker