Implementation Monitoring and Effects of Reforms
The FSB, through the Standing Committee on Standards Implementation (SCSI), coordinates and oversees the monitoring of the implementation of agreed financial reforms and its reporting to the G20. This includes reporting on members’ commitments and progress in implementing international financial standards and other policy initiatives; conducting peer reviews of FSB members (which are an obligation of membership); and encouraging global adherence to prudential regulatory and supervisory standards.
In order to strengthen the coordination and effectiveness of this monitoring, the FSB, in collaboration with the standard-setting bodies, established a framework in October 2011 - the Coordination Framework for Implementation Monitoring (CFIM) - for monitoring and reporting on the implementation of the G20 financial reforms. The CFIM was subsequently endorsed by the G20 Leaders at the Cannes Summit as a way to "intensify our monitoring of financial regulatory reforms, report on our progress and track our deficiencies".
The CFIM distinguishes between priority areas, which undergo more intensive monitoring and detailed reporting via periodic progress reports and peer reviews, and other areas of reform. The current list of priority areas, reviewed annually by the FSB in light of policy developments at the international level, comprises:
- the Basel III framework;
- compensation practices;
- resolution frameworks;
- policy measures for global systemically important financial institutions;
- over-the-counter derivatives market reforms; and
- shadow banking.
The FSB reviews the list of priority areas annually in light of policy developments at the international level.
A designated body -- for example, an FSB working group or the relevant standard-setter -- undertakes the monitoring and reporting of implementation progress in each priority area. The monitoring of the implementation in other areas of reform is undertaken by the FSB's Implementation Monitoring Network (IMN) based on survey responses of member jurisdictions.
With the main elements of the post-crisis reforms agreed and implementation underway, more detailed analysis of the effects of those reforms is becoming possible. The FSB, in collaboration with the standard-setting bodies (SSBs), is analysing the effects of reforms, including whether the reforms are working together as intended. The main findings are summarised in the annual FSB reports to the G20 on the implementation and effects of the G20 financial regulatory reforms.
In order to enhance the analysis of the effects of reforms, the FSB, in collaboration with the SSBs, published in July 2017 a framework for the post-implementation evaluation of the effects of the G20 financial regulatory reforms. The framework aims to guide analyses of whether the reforms are achieving their intended outcomes, and help identify any material unintended consequences that may have to be addressed, without compromising on the objectives of the reforms.
Links on this page provide information on implementation progress for priority and other reform areas, G20 progress reports, FSB thematic and country peer reviews, the effects of reforms, and the FSB’s initiative on international cooperation and information exchange.