In recent years, concerns have arisen about challenges in implementing agreed reforms and that commitment in this regard within jurisdictions may not be as strong as it once was, highlighting the need for increasingly robust implementation monitoring.
At the request of the G20, the FSB is undertaking a strategic review of its work to encourage and monitor the implementation of the agreed G20/FSB post-financial crisis reforms. The review is led by an independent external chair, Randal K. Quarles (former FSB Chair and former Vice Chair for Supervision of the US Federal Reserve Board).
This interim report outlines the FSB’s role in monitoring and reporting on implementation of FSB/G20 financial sector reforms. It looks at the implementation history of the main G20 financial reforms over the past 15 years, including policy measures to address too-big-to-fail, nonbank financial intermediation reforms, OTC derivatives market reforms, Basel III, and recommendations on crypto-asset markets and activities.
The report provides an initial assessment of how well implementation of these recommendations is progressing. In particular, the report shows that full, timely and consistent implementation has not been completely achieved. This is despite the active programme of implementation monitoring by the FSB and standard-setting bodies which has raised awareness and highlighted the importance of implementation of agreed reforms.
The next phase of work will seek to draw lessons as to what is likely to be the most effective approach to implementation monitoring and make recommendations on how the FSB can improve in this respect.
