Financial Stability Board Reports To G20 On Progress Of Financial Regulatory Reforms

The Chairman of the Financial Stability Board (FSB) reported to the G20 Finance Ministers and Central Bank Governors today on progress in the financial regulatory reform programme.

In connection with this, the FSB is publishing today:

•  a  letter by the FSB Chair to the G20, sent ahead of their meeting, reporting on the good progress being made in financial reforms, including in the following priority areas:
  • creating continuous core markets by completing OTC derivatives and related reforms;
  • strengthening the oversight and regulation of shadow banking;
  • building resilient financial institutions; and
  • ending “too big to fail”.

The  letter  also  summarises  the  FSB’s  recent   work   and  plans  to  monitor  the implementation of reforms.

• An  assessment of the effect of the G20 financial reform programme on the availability of long-term finance. This assessment has been contributed by the FSB as part of a broader diagnostic report prepared by international organisations to assess factors affecting long- term financing. The FSB assessment concludes that, while there may be short-term adjustment effects, the most important contribution of the financial reform programme to long-term investment finance is to rebuild confidence and resilience in the global financial system.
• a  joint update by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board on the status and timeline of their remaining projects on converging their standards.

At today’s meeting the G20 Finance Ministers and Central Bank Governors reaffirmed their commitment  to  the  full,  timely  and  consistent  implementation  of  internationally  agreed financial sector reforms, and looked forward to a comprehensive report on progress in implementing all reforms at the St Petersburg G20 Summit in September.