This summary implementation progress report was delivered to G20 Leaders ahead of their Summit in Osaka from 28-29 June 2019.
The report finds that the new financial regulatory framework called for by the G20 is now largely in place. Implementation is well underway, including further progress since the 2018 Summit. These reforms make the financial system more resilient, and thereby reduce the likelihood and severity – and associated public cost – of future financial crises. However, despite continued progress, implementation is not complete and remains uneven across reform areas. The challenges in meeting the agreed dates relate to domestic legislative or rule-making processes; concerns over the pace of implementation in other jurisdictions; and difficulties faced by regulated entities in adjusting to the new requirements. It is critical to maintain momentum and avoid complacency, in order to achieve the goal of greater resilience. The report calls for G20 Leaders’ continued support in implementing the agreed reforms.
Implementation progress across the four core reform areas is as follows:
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Building resilient financial institutions – Regulatory adoption of core Basel III elements has generally been timely, though implementation of some standards is behind schedule.
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Ending too-big-to-fail – Implementation of the policy framework has advanced the most for global systemically important banks. However, substantial work remains in achieving effective resolution regimes and operationalising plans for systemically important banks and non-bank financial institutions.
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Making derivatives markets safer – Overall good progress has been made to date across over-the-counter derivatives market reforms, though only one jurisdiction has reported further implementation progress since 2018.
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Enhancing resilience of non-bank financial intermediation (NBFI) – Implementation of reforms to strengthen oversight and regulation of NBFI remains at an earlier stage than in other areas, in part reflecting later implementation deadlines.
The FSB continues to evaluate the effects of reforms and will identify and deliver adjustments where appropriate, without compromising on financial resilience.