This letter was submitted to G20 Finance Ministers and Central Bank Governors (FMCBG) ahead of the G20’s meeting on 17-18 July.

The letter discusses recent events in the banking sector and the FSB’s workplan to draw lessons, along with the associated policy implications, from the episode. To do so, the FSB work programme has been reprioritised, including with an additional focus on the interactions between interest rate and liquidity risk across the financial system, the role of technology and social media in deposit runs and lessons for the international resolution framework. Meanwhile, the FSB’s work on non-bank financial intermediation (NBFI) remains a priority and the FSB is continuing to deliver on the previously agreed deliverables to the G20.

This body of work includes the reports the FSB is submitting to the July G20 FMCBG meeting, which are summarised in the letter, including:

  • recommendations for the regulation, supervision and oversight both of crypto-assets and markets and of global stablecoin arrangements

  • revised recommendations to address vulnerabilities from liquidity mismatch in open-ended funds

  • a policy toolkit for enhancing third-party risk management and oversight

  • a progress report on the FSB’s Roadmap to address climate-related financial risks

The financial system remains in the midst of a structural evolution, which includes increasing digitalisation, growing consideration of climate-related issues and an increasingly important role for NBFI in financing economic activity. The FSB will continue to facilitate global cooperation in assessing vulnerabilities and designing and implementing policy reforms.