FSB Chair’s letter to G20 Finance Ministers and Central Bank Governors: February 2025

24 February 2025 | PDF full text (105 KB)

The outlook for the global economy is characterised by shifting financial conditions and geopolitical uncertainty. Against this backdrop, it is important that we remain attentive to global financial stability.

This letter was submitted to G20 Finance Ministers and Central Bank Governors (FMCBG) ahead of the G20’s meeting on 26-27 February.

Under the G20’s leadership, and working through its members, the FSB has developed extensive reforms in recent years to enhance resilience by addressing key financial system vulnerabilities.

With key reforms developed or nearing completion, the letter sets out the prominent role that the promotion and monitoring of implementation will play in the FSB’s work this year. The letter also sets out the other work underway at the FSB in 2025 and its relevance to global financial stability.

FSB reports to the G20 in 2025
Date Report
April Final Format for Incident Reporting Exchange (FIRE)
July NBFI leverage policy recommendations – final report
Workplan to address issues related to non-bank data availability, use and quality
Climate roadmap progress report
October       Vulnerabilities associated with the use of artificial intelligence in finance
Thematic peer review of crypto-assets recommendation implementation
Implementation monitoring review progress report
Cross-border payments roadmap progress and KPI monitoring report (combined)

FSB Chair calls for renewed focus on implementation

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Ref: 5/2025

  • Under the South African G20 Presidency, the FSB is prioritising the promotion and monitoring of key reforms, with a strategic review and interim report set for delivery in 2025.
  • Implementation work also includes a peer review on implementation of the FSB’s global regulatory framework for crypto-asset markets and activities and global stablecoin arrangements.
  • Letter outlines key issues the FSB is working on in 2025, including cross-border payments, non-bank financial intermediation, digital innovation and climate-related financial risks.

The Financial Stability Board (FSB) today published a letter from its Chair, Klaas Knot, to G20 Finance Ministers and Central Bank Governors ahead of their meeting on 26-27 February.

The letter notes that shifting financial conditions and geopolitical uncertainty call for continued vigilance on financial stability. The FSB has developed extensive reforms in recent years to enhance resilience by addressing key financial system vulnerabilities. These reforms target not only safety and soundness, but also support innovation by providing clarity on policy approaches for emerging topics like crypto-assets.

The letter notes that with key reforms developed or nearing completion, the FSB is shifting toward a greater focus on the promotion and monitoring of implementation. This work will take a prominent role in 2025 as the FSB undertakes a strategic review of 15 years of monitoring reform implementation. The review will provide insights into the effectiveness of the monitoring of post-global financial crisis regulatory reforms and identify areas where the FSB can make improvements in the tools it uses to ensure the consistent, global implementation of agreed reforms. The FSB will deliver an interim report on this work to the G20 in October.

The FSB will also remain proactive in assessing financial system vulnerabilities. This includes work to address data and information gaps in non-bank financial intermediation, which have impeded the effective assessment of relevant vulnerabilities and the formulation of proportionate policy responses.

The letter sets out in more detail the work underway this year at the FSB and its relevance to international financial stability.

Notes to editors

The FSB coordinates and oversees the monitoring of the implementation of agreed financial reforms and its reporting to the G20. This includes reporting on members’ commitments and progress in implementing international financial standards and other policy initiatives; conducting peer reviews of FSB members (which are an obligation of membership); and encouraging global adherence to prudential regulatory and supervisory standards.

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.

Thematic Peer Review on FSB Global Regulatory Framework for Crypto-asset Activities

21 February 2025 | PDF full text (85 KB)

The FSB is committed to promoting implementation of the FSB’s Global Regulatory framework for crypto-assets and engaging beyond G-20 jurisdictions.

The Financial Stability Board (FSB) is seeking feedback from stakeholders as part of its thematic peer review on the implementation of its global regulatory framework for crypto-asset activities. The framework consists of two sets of high-level recommendations for the regulation, supervision and oversight of (i) crypto-asset activities and markets, and (ii) “global stablecoin” arrangements.

The objective of the review is to examine progress made by FSB member and select non-member jurisdictions in implementing the FSB’s global regulatory framework, including any lessons learnt. The Summary Terms of Reference provides more details on the objectives, scope, and process for this review.

The FSB has distributed a questionnaire to relevant jurisdictions to collect information. In addition, as part of this peer review, the FSB invites feedback from stakeholders on the following issues:

  • Impact of jurisdictional regulatory frameworks on decisions of crypto-asset issuers and service providers (including stablecoin arrangements) to locate and structure their business.
  • Experiences and challenges faced by crypto-asset market participants to meet the relevant regulatory and supervisory requirements.
  • How financial stability vulnerabilities of crypto asset activities, including stablecoins, differ across jurisdictions (e.g. based on the scale and materiality of the adoption of services) and how vulnerabilities are evolving (e.g. in type or magnitude) as jurisdictions implement relevant regulatory and supervisory frameworks. 
  • Whether there are specific market practices and/or trends in certain geographies and/or segments that may pose a threat to financial stability.

Feedback should be submitted by 28 March 2025 to [email protected] under the subject heading “FSB Thematic Peer Review on global crypto”. Individual submissions will not be made public. The peer review report is expected to be published in October 2025.

The Financial Stability Board appoints new members to its Taskforce on Legal, Regulatory and Supervisory matters

20 February 2025

The LRS Taskforce in its new composition will continue to provide a forum for engagement between public- and private-sector experts to support the G20 Roadmap for enhancing cross-border payments.

The Financial Stability Board has renewed the composition of its Taskforce on Legal, Regulatory, and Supervisory matters (LRS Taskforce). The Taskforce aims to strengthen collaboration between the public sector and senior managers from the private sector to support the G20 Roadmap for enhancing cross-border payments.

Following a public call for nominations for senior private-sector applicants with significant experience and direct responsibilities related to cross-border payments in the areas of compliance, legal, cross-border operations or risk management, the FSB has invited 12 new members to join the Taskforce. The selection aims to achieve a diverse membership from both a geographic and business perspective.

The FSB LRS Taskforce will continue to work in close cooperation with the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) Taskforce on Cross-border Payments Interoperability and Extension.

The LRS Taskforce composition is renewed periodically every two years.

FSB MENA Group discusses cross-border payments, non-bank financial intermediation and crypto-asset recommendations

30 January 2025

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Ref: 4/2025

The Financial Stability Board (FSB) Regional Consultative Group for the Middle East and North Africa (RCG MENA) met on 29 and 30 January 2025 in Sharm El Sheikh, hosted by the Central Bank of Egypt.  

The meeting started with an overview of the FSB’s work programme for 2025. Members exchanged views on how to best incorporate their regional perspective into the planned initiatives. Accelerating progress in cross-border payments, strengthening the resilience of non-bank financial intermediation (NBFI), and implementing the FSB’s regulatory framework for crypto-assets were considered among the areas most relevant for the MENA region.

On the topic of cross-border payments, members discussed the FSB’s 2024 progress report on the G20 Roadmap for cross-border payments and the challenges to further improve the speed and cost of transactions. These challenges include frictions that arise from the laws, rules, and regulatory requirements for collecting, storing, and managing data that must accompany a cross-border payment. To address this, implementation of the FSB’s recommendations to promote interoperability in data frameworks was seen as a priority.

Members reviewed recent NBFI developments, drawing on the findings of the FSB’s latest Global Monitoring Report on Non-Bank Financial Intermediation and were briefed by IOSCO on its recent publications on open-ended funds and liquidity risk management in collective investment schemes. They also discussed the FSB’s proposed package of recommendations to address leverage in the NBFI sector, and the approach to equip authorities with the flexibility needed to address specific risks within jurisdictions, while allowing for a consistency of outcomes across jurisdictions.

Members shared experiences of crypto usage in their jurisdictions and progress in the development of regulatory frameworks for crypto-assets and stablecoins, including challenges in implementing the FSB’s recommendations.

Finally, members exchanged views on global and regional market developments, including perspectives on the outlook for financial stability and geopolitical risks; high levels of sovereign debt could become a source of vulnerabilities.

Notes to editors

The FSB RCG for the Middle East and North Africa is co-chaired by Governor Ayman M. Al-Sayari, Saudi Central Bank, and Governor Hassan Abdalla, Central Bank of Egypt. Membership includes financial authorities from Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, Türkiye and the United Arab Emirates.

The FSB has six Regional Consultative Groups, established under the FSB Charter, to bring together financial authorities from FSB member and non-member countries to exchange views on vulnerabilities affecting financial systems and on initiatives to promote financial stability.1 Typically, each Regional Consultative Group meets twice each year.

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.

  1. The FSB Regional Consultative Groups cover the following regions: Americas, Asia, Commonwealth of Independent States, Europe, Middle East and North Africa, and sub-Saharan Africa. ↩︎

FSB Work Programme for 2025

23 January 2025 | PDF full text (380 KB)

The FSB’s work programme for 2025 addresses challenges including digitalisation, climate change, and the consequences of shifts in the macroeconomic and interest rate environment.

In line with the FSB’s mission to promote international financial stability, our priorities for 2025 reflect challenges that are global in nature and affect the financial system as a whole, such as digitalisation and climate change. Work will continue in key areas such as non-bank financial intermediation and cross-border payments. The FSB will keep monitoring emerging financial vulnerabilities and continue its work to implement agreed reforms and evaluate their effects with a view to maintain the resilience of the global financial system.

Priority areas of work for 2025 include:

  • Supporting global cooperation on financial stability
  • Enhancing the resilience of non-bank financial intermediation (NBFI), while preserving its benefits
  • Harnessing the benefits of digital innovation while containing its risks
  • Implementing the systemically important financial institution (SIFI) framework
  • Addressing financial risks from climate change
  • Enhancing cross-border payments
  • Completing resolution reforms
  • Monitoring and evaluating implementation of agreed reforms

Ahead of the G20 Leaders Summit in November 2025, the FSB will publish its comprehensive Annual Report on its work to promote global financial stability.

Indicative timeline of key FSB publications planned for 2025
Date Work Programme Item  
2025    
Jan Evaluation of the effects of the G20 financial regulatory reforms on securitisation  
The relevance of transition plans for financial stability  
Assessment of climate-related vulnerabilities – analytical framework and toolkit  
Apr Final Format for Incident Reporting Exchange (FIRE) G20 2025 Logo
Jun Biennial External Audit Roundtable  
Jul NBFI leverage policy recommendations – final report G20 2025 Logo
Workplan to address issues related to non-bank data availability, use and quality G20 2025 Logo
Annual NBFI progress report  
Climate roadmap progress report G20 2025 Logo
Oct Vulnerabilities associated with the use of artificial intelligence in finance G20 2025 Logo
Thematic peer review of crypto-assets recommendation implementation G20 2025 Logo
Implementation monitoring review progress report G20 2025 Logo
Cross-border payments roadmap progress and KPI monitoring report (combined) G20 2025 Logo
Nov 2025 G-SIB list  
Spain country peer review  
Netherlands country peer review  
Payments summit  
Guidance on approaches to determining the application of Key Attributes to insurers  
Dec FSB Annual Report  
Global Monitoring Report (GMR) on NBFI  
Sanctions data formatting standard to enhance cross-border payments  
2026    
Jan Annual resolution report  
List of insurers subject to Key Attributes resolution planning standards  
G20 2025 Logo

= G20 deliverable

FSB finds that the G20 financial regulatory reforms have enhanced the resilience of securitisation markets

22 January 2025

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Ref: 3/2025

  • Minimum risk retention and higher prudential requirements have contributed to the resilience of the residential mortgage-backed securities (RMBS) and collateralised loan obligation (CLO) securitisation markets, without strong evidence of material negative side-effects on financing to the economy.
  • Report notes recent growth in CLOs and warns that the post-GFC securitisation market has not yet been tested through a full credit cycle.
  • The evaluation identifies issues for consideration by national authorities and international bodies, such as the need to monitor risks from recent market developments and the role of risk retention and third-party financing for CLOs.

The Financial Stability Board (FSB) today published the final report of its Evaluation of the Effects of the G20 Financial Regulatory Reforms on Securitisation. The report focuses on the International Organization of Securities Commissions (IOSCO) minimum retention recommendations and the Basel Committee on Banking Supervision (BCBS) revisions to prudential requirements for bank securitisation-related exposures in RMBS and CLO markets.

The evaluation finds that these reforms, introduced in the aftermath of the 2008 global financial crisis (GFC), have contributed to the resilience of the securitisation market without strong evidence of material negative side-effects on financing to the economy. Complex structures that contributed to the GFC – including securitisations of subprime assets, collateralised debt obligations and re-securitisations – have declined significantly, while the securitisation market is more transparent. However, the market has not yet been tested through a full credit cycle to fully confirm the evidence on enhanced resilience. This is particularly relevant for CLOs that have grown significantly in recent years but have not yet experienced a prolonged downturn.

The reforms appear to have contributed to a redistribution of risk from banks to the non-bank financial intermediation (NBFI) sector, with banks shifting towards higher-rated tranches. This redistribution of risk has been driven both by an increase in non-bank financing of the economy and by the growth of non-bank investors in securitisations. Risk transfer for investors is more evident in the CLO than the RMBS market. The financial stability impact of this trend is difficult to assess since it is not always clear if the non-bank entities taking on the risks are well-placed to assume them given their funding structure and ability to withstand losses in stress events.

The report highlights key issues for national authorities and international bodies to consider:

  • the need to monitor risks in securitisation markets in light of developments such as the growth of synthetic risk transfers and private credit in securitisation structures;
  • the effectiveness of risk retention requirements for risk alignment in CLOs, given the fact that a large part of the global CLO market does not currently operate under such requirements and given the use of third-party risk financing for CLO structures; and
  • differences in reform implementation across FSB member jurisdictions, whose impact needs to be considered as authorities explore opportunities for framework adjustments.

Benjamin Weigert, Director General for Financial Stability at the Deutsche Bundesbank and Chair of the FSB group that carried out the evaluation, said “The evaluation highlights the importance of the G20 reforms in enhancing securitisation market resilience. Nonetheless, recent market developments reinforce the need for authorities to monitor risks and to ensure the alignment of incentives between securitisation originators, sponsors and investors.”

Ryozo Himino, Deputy Governor at the Bank of Japan and Chair of the Standing Committee on Standards Implementation that oversaw the preparation of the report, said “Evaluations are a core part of the FSB’s mandate, as they help us to assess whether agreed reforms are achieving their intended outcomes and identify any material unintended consequences that may have to be addressed. This was the FSB’s first streamlined evaluation, focusing on the most relevant securitisation reforms and market segments from a financial stability perspective.”

Notes to editors

The evaluation assesses the extent to which the BCBS and IOSCO securitisation reforms have achieved their financial stability goals by reducing misaligned incentives and moral hazard. It also examines the broader effects of the reforms on the functioning and structure of securitisation markets and the financing of the real economy. It draws on a broad range of information sources and analytical approaches, including responses to a questionnaire by FSB member jurisdictions; input from stakeholders; a literature review; dialogue with academics; and various quantitative indicators and analyses on the effects of reforms using different datasets. These sources, taken together, form the basis for the conclusions in the report.

This final report reflects feedback received on a consultative version of the report, which the FSB published in July 2024. An overview of responses to the FSB’s public consultation was also published today.

The evaluation was undertaken using the FSB’s framework for the post-implementation evaluation of the effects of the G20 financial regulatory reforms. This is the fifth evaluation under the FSB framework. All completed evaluations are published on the FSB website.

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.

Evaluation of the Effects of the G20 Financial Regulatory Reforms on Securitisation: Final report

| PDF full text (6 MB)

Summary of document history

Summary of document history

A range of regulatory reforms were introduced to the securitisation markets to address the misalignment of incentives which occurred in certain securitisation structures in the run up to the 2008 global financial crisis.

The complex structuring and multi-step distribution chains involved in certain securitisation structures in the run-up to the 2008 global financial crisis generated misaligned incentives between the originator of a securitisation and its investors and led to weakened lending standards, while amplifying a rapid and largely undetected build-up of leverage and maturity mismatches.

A number of regulatory reforms have since been introduced to improve transparency, address conflicts of interest, strengthen the regulatory capital treatment for banks’ securitisation exposures by improving risk sensitivity and reducing cliff effects, and align incentives associated with securitisation.

This evaluation report focuses, in terms of scope, on the collateralised debt/loan obligation (CDO/CLO) and the nongovernment-guaranteed part of the residential mortgage-backed securities (RMBS) markets; and, in terms of reforms, on the International Organization of Securities Commissions (IOSCO) minimum retention recommendations to address incentive problems and the Basel Committee on Banking Supervision (BCBS) revisions to prudential requirements for banks’ securitisation-related exposures. These reforms aimed to address the vulnerabilities in the securitisation market that contributed to the amplification of losses during the 2008 global financial crisis.

The report provides an overview of securitisation markets across FSB member jurisdictions and outlines the securitisation reforms and their implementation status.

The analysis carried out by the evaluation suggests that the BCBS and IOSCO reforms have contributed to the resilience of the securitisation market without strong evidence of material negative side-effects on financing to the economy. However, the post-GFC securitisation market has not yet been tested through a full credit cycle to fully confirm the evidence on enhanced resilience. This is particularly relevant for CLOs that have grown significantly in recent years but have not, as yet, experienced a prolonged downturn.

Consistent with the FSB’s evaluation framework, the evaluation does not make policy recommendations but identifies some issues for consideration by relevant national authorities and international bodies related to:

  • Monitoring risks from recent developments in securitisation markets
  • The role of risk retention in the global CLO market
  • Third-party risk financing for CLOs
  • Implementation of securitisation reforms

Shaz Gitay, Member of the FSB Secretariat, highlights the findings of the report on the effects of the G20 financial regulatory reforms on securitisation.

Evaluation of the effects of securitisation reforms: Overview of the responses to the consultation

| PDF full text (118 KB)

Summary of document history

Summary of document history

On 2 July 2024, the FSB published a consultation report on the evaluation of the effects of the G20 financial regulatory reforms on securitisation. The objective of the consultation was to gather stakeholder feedback on the interim findings of the evaluation.

The FSB received 16 responses to the consultation, which ended on 2 September 2024.
During the consultation period, the FSB hosted a virtual public workshop on 22 August and organised a roundtable with academics to receive additional external views on the conceptual and empirical arguments for risk retention in collateralised loan obligations (CLOs).

This note summarises the feedback received on the consultation report – both from the public responses and from the workshop – and sets out the main changes made to the final report in order to address them. The note also provides a short overview of additional analysis carried out by the FSB since the consultation report to enhance the robustness of the results.

Assessment of Climate-related Vulnerabilities: Analytical framework and toolkit

16 January 2025 | PDF full text (2 MB)

Climate-related vulnerabilities in the financial system, when triggered by climate shocks, could threaten financial stability through various transmission channels and amplification mechanisms

Climate-related shocks could materialise through abrupt changes in policies, technological innovation and/or consumer preferences (transition risks), or through the materialisation of physical hazards, such as floods, droughts or windstorms (physical risks). These shocks raise concerns over financial institutions’ ability to manage their risks and to continue to provide financial services in certain segments and geographical areas. Climate shocks can interact with existing vulnerabilities in the real economy or in the financial system and threaten financial stability through various transmission channels and amplification mechanisms.

This report introduces an analytical framework that the FSB will use to trace how physical and transition climate risks can be transmitted and amplified by the global financial system. This framework builds on the existing FSB Financial Stability Surveillance Framework and focuses on assessing climate-related vulnerabilities holistically, particularly from a cross-border and cross-sectoral point of view.

Framework for the assessment of climate-related vulnerabilities
Framework for the assessment of climate-related vulnerabilities

Complementing the framework, the report identifies various metrics used by FSB members that could potentially be used to monitor climate-related vulnerabilities from a forward-looking perspective. The framework and toolkit are live documents, to be refined as understanding evolves on how climate-related vulnerabilities affect financial stability and as methodological and data issues are resolved.