This letter from the FSB Chair to the G20 Leaders in advance of the Antalya Summit reports on progress on the FSB’s work and highlights issues that demand the attention of Leaders. It sets out four key points:
- First, the implementation of agreed reforms has substantially strengthened the resilience of the global system.
- Second, the FSB has now finalised the tools needed to end “Too Big To Fail” in the banking sector.
- Third, the G20 must remain vigilant to new risks and vulnerabilities.
- Fourth, the FSB is placing greater emphasis on the impact of reforms on emerging and developing economies.
Among the topics the letter covers are:
- the FSB’s first annual report on implementation of the financial reforms and their effects;
- the tools needed to end Too Big To Fail for banks;
- ending Too Big To Fail outside the banking sector;
- risks stemming from market-based finance, and changes in market structure and liquidity;
- misconduct risks;
- correspondent banking and the potential risk of financial exclusion; and
- climate change and risks to financial stability.
The letter concludes that durable success will require sustained efforts to implement fully the G20’s agreed reforms; to monitor their effects on sustainable growth; to maintain constant vigilance to new and evolving risks, and to deepen the FSB’s open and cooperative approach. In these ways, the FSB can fully support the G20’s efforts to build a resilient, open and trusted financial system that will support strong, sustainable and balanced growth for all countries.