FSB Chair's Letter to G20 Leaders
To G20 Leaders
Progress and issues on the global regulatory reform agenda
Since the Pittsburgh Summit, the Financial Stability Board (FSB) and its members have advanced a broad program of reforms based on clear recommendations and timetables endorsed by the G20. The progress achieved is detailed in the reports we have sent to you. The focus of our work has been on the following core areas of reform:
- strengthening bank capital and liquidity standards;
- reducing the moral hazard posed by systemically important financial institutions;
- improving over-the-counter (OTC) derivatives markets; and
- enhancing incentive structures and transparency.
2010 will be a critical year for advancing these reforms, which are essential to creating a sounder financial system and reducing systemic risk globally. I therefore ask you to strongly signal your support and determination to implement fully and consistently reforms in these core areas at national level.
The progress we have achieved has been made possible by your support and through intense cooperation between the FSB member countries and the international bodies. However, given the global nature of our financial system, it is essential that we broaden the circle of countries engaged in our work through regional outreach, and that we strengthen the operational capacity of the FSB. We will work on this and report to you on our progress in your next meetings. Continue reading