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Ref: 11/2025
The Financial Stability Board (FSB) Plenary met in Madrid on 11 June to discuss key priorities for global financial stability.
The Plenary confirmed the appointment of Andrew Bailey, Governor of the Bank of England, as the next FSB Chair for a three-year term beginning on 1 July 2025. Plenary members thanked Klaas Knot for his leadership and guidance in steering the work of the FSB over the past four years.
Members discussed vulnerabilities in the global financial system, issues related to non-bank financial intermediation (NBFI), crypto-assets, climate-related financial risks, and resolution.
Financial stability outlook
Financial markets have largely stabilised following the sudden and severe spike in market volatility in April 2025 that followed the announcement of US trade tariffs and retaliatory action by some other jurisdictions. The episode illustrated how elevated asset prices, which were highlighted as a vulnerability in recent FSB work, can be susceptible to a sudden unwind in the event of an external shock. Plenary members noted that financial markets remained resilient through this episode, despite much higher trading volumes. Nevertheless, members cautioned that there remains a risk of further market strains given the uncertainty about the economic outlook and the potential for unexpected policy changes.
Members also highlighted key vulnerabilities requiring attention in the coming months. Debt levels, in particular government debt, are high, and debt dynamics are projected to worsen in a number of jurisdictions. Potential vulnerabilities from leverage and liquidity mismatches in parts of the NBFI sector remain, while operational failures can impact critical parts of the financial system. Growing interlinkages between crypto-asset markets and the financial system and increasing use cases for stablecoins warrant closer monitoring.
Non-bank financial intermediation
The Plenary reviewed the FSB’s upcoming recommendations on NBFI leverage, which will be delivered to the G20 in July, and discussed the medium-term work plan aimed at enhancing resilience in NBFI.
Taking forward the FSB’s work programme to enhance the resilience of NBFI depends heavily on reliable data. In the course of its work, the FSB has identified several data challenges that have hindered the effective assessment of nonbank sector vulnerabilities by authorities. The FSB has set up a high-level task force, the Nonbank Data Task Force – chaired by incoming FSB Chair Andrew Bailey – to address these challenges. The Plenary received an update on the Taskforce’s work and approved a near-term focus on use of leverage in government bond markets.
The FSB will publish a report in July detailing progress on its overall NBFI work programme, and a report outlining its workplan to address nonbank data challenges.
FSB work programme updates
The Plenary discussed progress on the FSB’s work programme for 2025 and received updates on key initiatives from its committees.
The Plenary reviewed the status of the FSB Roadmap for addressing climate-related financial risks, on which the FSB has been asked to provide a progress report to the July G20 meeting. As part of annual work programme discussions, FSB members will continue to evaluate how the analysis of topics, such as physical risks and gaps in insurance coverage, may contribute to a better understanding of financial stability risks.
Members received updates on the implementation of the FSB’s global recommendations and the ongoing crypto thematic peer review, which will be delivered to the G20 later this year.
The Plenary also discussed progress on the Resolution Steering Group’s key initiatives and future priorities. Members expressed support for ongoing efforts to strengthen resolution effectiveness and enhance crisis preparedness.
Notes to editors
The FSB coordinates at the international level the work of national financial authorities and international standard-setting bodies and develops and promotes the implementation of effective regulatory, supervisory, and other financial sector policies in the interest of financial stability. It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts. The FSB also conducts outreach with approximately 70 other jurisdictions through its six Regional Consultative Groups.
The FSB is chaired by Klaas Knot, President of De Nederlandsche Bank. The FSB Secretariat is located in Basel, Switzerland and hosted by the Bank for International Settlements.