The Financial Stability Board (FSB) published a letter from its chair, Klaas Knot, to G20 Finance Ministers and Central Bank Governors ahead of their meeting on 23th to 24th April.
The letter, Knot’s final one as FSB chair, comes at a time of heightened financial market volatility and geopolitical risks.
Reflecting on recent episodes of financial market turmoil, Knot emphasised the importance of vigilance and international cooperation to address emerging risks and ensure the continued resilience of the financial system.
The letter highlighted the role played by non-bank financial entities in recent periods of market turmoil, outlining the FSB’s work to strengthen the resilience of non-bank financial intermediation (NBFI).
The FSB is currently finalising recommendations to address financial stability risks arising from leverage in NBFI that will be delivered to the G20 in July, marking a significant step in bolstering the sector’s resilience.
The letter also noted the FSB’s work to address cyber risks, which have culminated with this month’s release of the FSB’s Format for Incident Reporting Exchange (FIRE); and work to enhance cross-border payments, where efforts are focused on intensifying the FSB’s engagement with the private sector and regulators to encourage implementation of the G20 Roadmap.
The letter reflected on the FSB’s role in fostering international cooperation to address financial stability challenges and calls on authorities to remain committed to implementing the agreed international reforms in order to preserve financial stability in an evolving risk environment and avoid fragmentation.
