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.
Analysis of existing financial resources and tools for central counterparty (CCP) recovery and resolution confirms the need for further work on CCP financial resources for recovery and resolution.
Report notes that crypto-asset markets could reach a point where they represent a threat to global financial stability, and calls for timely and pre-emptive evaluation of possible policy responses.
FSB publishes papers and accompanying request for feedback on practices regarding funding in resolution and internal financial and operational interconnectedness in insurers.
