This letter was submitted to G20 Finance Ministers and Central Bank Governors (FMCBG) ahead of the G20’s meeting on 24-25 February.

The financial stability outlook remains challenging. While expectations of a ‘soft landing’ for the global economy have grown, the outlook remains clouded by uncertainty. The combination of near record-high levels of debt, rising debt service costs and stretched asset valuations in some key markets can pose serious threats to financial stability. The letter lays out the FSB’s work during 2023 to monitor and address these conjunctural vulnerabilities, as well as a number of structural vulnerabilities.

The letter introduces the reports the FSB is delivering to the February G20 FMCBG meeting, which cover:

  • The financial stability aspects of commodity markets, which forms part of the FSB’s work programme to strengthen the resilience of the NBFI sector.

  • The financial stability risks of decentralised finance (DeFi), a fast-growing segment of the crypto-asset ecosystem. The report forms part of the FSB’s work programme, jointly with sectoral standard setters, for the delivery of a consistent and comprehensive regulatory framework for crypto-assets.

  • Priority actions for achieving the G20 targets for enhancing cross-border payments. The report contains a detailed set of next steps to achieve the G20 cross-border payments roadmap’s goals and is being accompanied by the establishment of two new taskforces to work in partnership with the private sector.

The letter also outlines forthcoming work to enhance cyber and operational resilience; and to address climate-related financial risks, through the FSB’s climate roadmap.

FSB reports to the G20 during the 2023 Indian Presidency
Date Report
February Financial stability aspects of commodities markets
Financial stability implications of decentralised finance (DeFi)
Updated set of prioritised actions under Cross-border Payments Roadmap
April Achieving convergence in cyber incident reporting – finalised report and format for incident reporting exchange (FIRE) report
July Regulatory and supervisory approaches to crypto-assets and markets - finalised recommendations
Regulatory and supervisory approaches to global stablecoin arrangements - finalised recommendations
Third-party risks and outsourcing – consultation paper
Annual progress report on FSB Roadmap for Addressing Financial Risks from Climate Change
Revised FSB Recommendations to address liquidity mismatch in open-ended funds – consultation paper
September FSB-IMF synthesis note on macroeconomic and regulatory perspectives on crypto-assets
Financial stability implications of leverage in the non-bank sector
Enhancing the resilience of NBFI: progress report
October Promoting Global Financial Stability: 2023 FSB Annual Report
Annual progress report on climate-related disclosures
Annual progress report on Cross-border Payments Roadmap