Today, Bank Negara Malaysia hosted the fourth meeting of the Financial Stability Board (FSB) Regional Consultative Group for Asia in Kuala Lumpur, Malaysia. In 2011, six regional consultative groups1 of the FSB were established responding to the call of the G20 Leaders at the Toronto Summit (June 2010), to bring together financial authorities from FSB member and non-member countries to exchange views on vulnerabilities affecting financial systems and on initiatives to promote financial stability.
At their meeting today, members of the FSB Regional Consultative Group for Asia began by reviewing the FSB’s policy priorities and work plan. This was followed by a discussion of vulnerabilities and regional financial stability issues. Specifically, members deliberated the implications of prolonged strong credit growth, resultant asset price risk and policy options, and then separately considered market and funding implications arising from a potential reversal of capital flows.
Members also considered the impact of the framework for systemically important financial institutions on Asia and possible policy responses, and the structure of shadow banking in Asia. In a final session, members discussed the impact of regulatory issues and reforms stemming from the global financial crisis and what they mean for the region. The focus was on reforms in three areas: (1) the revised Basel III liquidity requirements, (2) risk governance in financial institutions and the findings of the FSB’s recently published thematic peer review on risk governance2, and (3) the Key Attributes of Effective Resolution Regimes for Financial Institutions3 and their implementation in the region.
The FSB Regional Consultative Group for Asia is co-chaired by Governor Choongsoo Kim, Bank of Korea and Governor Zeti Akhtar Aziz, Bank Negara Malaysia. Membership includes financial authorities from Australia, Cambodia, China, Hong Kong SAR, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Thailand and Vietnam. The list of members of the Regional Consultative Group for Asia is accessible at: http://www.financialstabilityboard.org/about/rcgasia.pdf.
- Regional consultative groups were established for the following regions: Americas, Asia, Commonwealth of Independent States, Europe, Middle East and North Africa, and Sub-Saharan Africa.
- See http://www.financialstabilityboard.org/publications/r_130212.pdf.
- See http://www.financialstabilityboard.org/publications/r_111104cc.pdf.
