This letter was submitted to G20 Finance Ministers and Central Bank Governors (FMCBG) ahead of the G20’s meeting on 28-29 February.

The financial stability outlook remains challenging. Against a background of modest, but steady global growth and moderating inflation, caution is warranted. Past interest rate hikes are still passing through to borrowers, asset valuations are also stretched in some key markets, and abrupt shifts in market pricing could expose vulnerabilities in the financial system, including those related to leverage and liquidity mismatch in non-bank financial intermediation (NBFI).

The letter lays out the FSB’s workplan for 2024.  Core elements of this plan are to identify and address financial system vulnerabilities in key areas including lessons from the March 2023 banking turmoil, NBFI, digitalisation and climate change; and to enhance the efficiency of cross-border payments.

FSB reports to the G20 during the 2024 Brazilian Presidency
Date Report
February Recommendations to address structural vulnerabilities from liquidity mismatch in open-ended funds – Final report (published in December 2023)
July Enhancing resilience in NBFI: Progress report
Stocktake of regulatory and supervisory initiatives related to the identification and assessment of nature-related financial risks
October Annual report on implementation of the cross-border payments Roadmap
Progress report on achieving the cross-border payments quantitative targets
Crypto Roadmap status report
Report on the financial stability implications of tokenisation
Report summarising the work on interest and liquidity risk and on deposit behaviour and the role of technology and social media
Format for incident reporting exchange (FIRE) – Consultation report
November Report on the financial stability implications of artificial intelligence
Report on progress in achieving consistent climate-related financial disclosures
Promoting Global Financial Stability: 2024 FSB Annual Report