The FSB is consulting on its recommendations, which aim to assist supervisory and regulatory authorities in developing their approaches to monitor, manage and mitigate cross-sectoral and system-wide risks arising from climate change and to promote consistent approaches across sectors and jurisdictions.
FSB report takes stock of recent trends in the structure of EMEs’ external borrowing, focusing on the shift towards non-bank financing; examines how these developments contributed to the build-up of vulnerabilities in EMEs and to the March 2020 turmoil; and considers policy measures to enhance EME resilience.
FSB Chair’s letter presents the current outlook for financial stability and sets out the FSB’s plans to assess and address emerging vulnerabilities, including in commodity markets, in the coming months.
Following years of preparation, the end of 2021 marked a major milestone in the transition away from LIBOR and the FSB welcomes the smooth transition to robust alternative rates across global markets, primarily overnight risk-free or nearly risk-free rates.
FSB outlines ongoing and planned initiatives in 2022, with work priorities focussing on global and systemic financial challenges, including digitalisation, climate change and potentially also shifts in the macroeconomic and interest rate environment.
Report considers the financial stability implications from the accelerated trend towards digitalisation during the pandemic and highlights the importance of cooperation between financial, competition and data protection authorities.