This letter from the FSB Chair, Klaas Knot, was submitted to G20 Leaders ahead of their meeting in Rio on 18 September.
Episodes of market turmoil and the failure of several banks and non-banks in recent years are a stark reminder that vulnerabilities remain within the global financial system. And as the financial system evolves, new risks are emerging. It is imperative for policy makers to keep up.
Over the past year, the FSB has made meaningful progress on reforms to address key financial system vulnerabilities. The letter outlines work on the work programme to enhance resilience in non-bank financial intermediation, as well as to address risks stemming from digitalisation and climate change.
The letter is accompanied by the FSB’s Annual Report on its work to promote global financial stability.