FSB briefs on regulatory priorities including systemic implications stemming from FinTech

The Financial Stability Board (FSB) today 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:

  1. Promoting a coordinated programme of reforms to deliver resilient sources of market-based finance, including addressing structural vulnerabilities associated with asset management activities;
  2. Developing robust financial market infrastructure, including assessing policies on central counterparty resilience, recovery and resolvability, and recommending any necessary improvements; and
  3. 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:

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

The FSB letter can be found here.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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