FSB Chair’s letter to G20 Leaders: September 2023
The New Delhi Summit is taking place at a pivotal time for global financial stability.
This letter was submitted to G20 Leaders ahead of their meeting on 9-10 September.
Relatively strong and persistent inflation has seen financial conditions tighten and interest rates rise strongly in many jurisdictions over the past year. The letter warns that this, alongside a slowing growth outlook, could impair the capacity of borrowers to service the historically high stock of outstanding global debt and create challenges for both bank and non-bank lenders.
The letter looks back at the March banking-sector turmoil. The FSB and the Basel Committee on Banking Supervision (BCBS), as well as our member authorities, are examining the implications to identify lessons and adjust policy frameworks where needed. The letter also discusses the FSB’s work to assess and address systemic risk in non-bank financial intermediation (NBFI), in particular to address risks associated with NBFI leverage; and outlines the FSB’s work to address the financial stability implications of:
Crypto-assets including so-called stablecoins
Growing reliance on third-party service providers
The letter calls for the G20’s continued support on the FSB’s work to take forward the G20 Roadmap to enhance cross-border payments and points to a separate letter submitted to G20 Leaders on this subject.