I reported in February on the priorities, agreed by G20 Leaders in St. Petersburg, for substantially completing the core of the G20’s programme of fundamental reform of the global financial system during the Australian Presidency. We are on-track to deliver for the Brisbane Summit, but difficult decisions remain to be taken in three particular areas where the support of Ministers and Governors is essential:
- Ending too-big-to-fail;
- Transforming shadow banking to transparent and resilient market-based financing; and
- Making derivatives markets safer.
In addition, I highlighted in February the need for the G20 to develop an approach to financial regulation that went beyond the Brisbane Summit. At the heart of that approach are commitments to:
- Peer reviews and impact assessments;
- Outcomes-based approaches to resolving cross-border issues; and
- Enhanced co-operation to avoid domestic measures that fragment the global system.
Consistent with building the mutual confidence and trust to underpin that approach, a review of the representation of jurisdictions on the FSB has begun. This letter summarises the progress to complete the programme of reform for the Brisbane summit, begins to look ahead to plans for implementation beyond Brisbane, and summarises the initial findings of the FSB review of representation. Continue reading