Implementation Monitoring

The FSB, through the Standing Committee on Standards Implementation (SCSI), 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.

In order to strengthen the coordination and effectiveness of this monitoring, the FSB, in collaboration with the standard-setting bodies (SSBs), established a framework in October 2011 - the Coordination Framework for Implementation Monitoring (CFIM) - for monitoring and reporting on the implementation of the G20 financial reforms. The CFIM was subsequently endorsed by the G20 Leaders at the Cannes Summit as a way to "intensify our monitoring of financial regulatory reforms, report on our progress and track our deficiencies".

The CFIM distinguishes between priority areas, which undergo more intensive monitoring and detailed reporting via periodic progress reports and peer reviews, and other areas of reform. The current list of priority areas, reviewed annually by the FSB in light of policy developments at the international level, comprises:

  • the Basel III framework;

  • compensation practices;

  • resolution frameworks;

  • policy measures for global systemically important financial institutions;

  • over-the-counter derivatives market reforms; and

  • non-bank financial intermediation.

Effects of Reforms

With the main elements of the post-crisis reforms agreed and implementation underway, more detailed analysis of the effects of those reforms is becoming possible. The FSB, in collaboration with the SSBs, is analysing the effects of reforms, including whether the reforms are working together as intended. The main findings are summarised in the annual FSB reports on the implementation and effects of the G20 financial regulatory reforms.

In order to enhance the analysis of the effects of reforms, the FSB in collaboration with the SSBs published in July 2017 a framework for the post-implementation evaluation of the effects of the G20 financial regulatory reforms. The framework guides analyses of whether the reforms are achieving their intended outcomes, and helps identify any material unintended consequences that may have to be addressed, without compromising on the objectives of the reforms.

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Annual Report on Implementation and Effects

Starting in 2015, the FSB has published – and sent to G20 Summits – annual reports on the implementation and effects of the G20 financial regulatory reforms. The purpose of those reports is to highlight the progress made by G20 and FSB members in implementing regulatory reforms to fix the fault lines that led to the global financial crisis and build a safer, more resilient financial system. Over time, these annual reports will enable the G20 to assess whether the financial reforms are achieving their intended results in an effective manner consistent with its objectives for financial stability and growth. Each report includes a colour-coded table (‘dashboard’) that summarises the status of implementation across FSB jurisdictions for priority reform areas.