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    Global Monitoring Report on Non-Bank Financial Intermediation 2022

    Report assesses global trends in the non-bank financial intermediation (NBFI) sector for the year ending 31 December 2021.

    Latest Publications

    23 February 2023 G20 Roadmap for Enhancing Cross-border Payments: Priority actions for achieving the G20 targets
    20 February 2023 FSB Chair’s letter to G20 Finance Ministers and Central Bank Governors: February 2023
    20 February 2023 The Financial Stability Aspects of Commodities Markets
    16 February 2023 The Financial Stability Risks of Decentralised Finance

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    Current Consultations

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    Domanski V20 speech

    Balancing Innovation and Financial Stability

    FSB Secretary General delivers a speech on the first day of the November 2022 V20 Summit, organised by IDAXA.

    Latest Press Releases

    23 February 2023 FSB invites senior representatives from firms and industry associations to join cross-border payment taskforce
    23 February 2023 FSB details actions for the next phase of the G20 Roadmap for Enhancing Cross-border Payments
    20 February 2023 FSB Chair outlines work priorities for 2023

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  • Post-2008 financial crisis reforms

Post-2008 financial crisis reforms

Safer, Simpler, Fairer

By fixing the fault lines that caused the crisis, the financial system is now safer, simpler and fairer than before. Watch the FSB video that explains the reforms. See more

Priority reforms

Following the 2008 financial crisis, the G20 committed to fundamental reform of the global financial system given the significant economic and social damage that it caused. The objectives were to correct the fault lines that led to the global crisis and to build safer, more resilient sources of finance to better the needs of the real economy. The G20 called on the FSB to develop and coordinate a comprehensive framework for global regulation and oversight of what is now a global financial system.

By reducing the risk of future financial crises and the consequences of financial instability for the real economy, these reforms were an essential contribution to the G20’s primary objective of strong, sustainable and balanced growth. The priority reforms areas are set out below.

To ensure that the agreed reforms were implemented, the FSB put in a place a detailed implementation monitoring regime and has conducted a number of evaluations to assess the effects of the reforms.

Building resilient financial institutions

More and better regulatory capital requirements, strengthened risk management practices and better aligned compensation structures will build more resilient financial institutions.

Ending too-big-to-fail

The SIFI Framework aims to address the systemic risks and the associated moral hazard problem for institutions that are seen by markets as too-big-to-fail.

Effective resolution regimes and policies

Financial institutions should be resolvable in an orderly manner without severe systemic disruption or exposing the taxpayer to the risk of loss, by protecting critical functions and by using mechanisms for losses to be absorbed (in order of seniority) by shareholders and unsecured and uninsured creditors.

More effective supervision

The level of supervision applied by national authorities must be commensurate with the potential destabilisation risk that such firms pose to their own domestic financial systems, as well as the broader international financial system.

Making derivatives markets safer

OTC derivatives market reforms include trade reporting, central clearing, trading on exchanges or electronic trading platforms, capital and margin requirements for non-centrally cleared transactions.

Enhancing resilience of non-bank financial intermediation

Non-bank financial intermediation provides a valuable alternative to bank financing and helps to support real economic activity. The FSB’s work in this area is focused on monitoring and addressing risks to financial stability arising from credit intermediation by non-banks.

Other reforms

Addressing data gaps

This initiative provides authorities with a stronger framework for assessing potential systemic risks and clearer sight of the interconnectedness of the largest financial institutions.

Legal Entity Identifier (LEI)

A uniform global LEI system provides a valuable ‘building block’ to contribute to and facilitate many financial stability objectives, including improved risk management in firms, better assessment of micro and macroprudential risks, facilitation of orderly resolution, and enabling higher quality and accuracy of financial data overall.

Reducing reliance on credit ratings

Reliance on credit agency ratings to the exclusion of internal credit assessments can be a cause of herding behaviour or “cliff effects” which can amplify procyclicality and cause systemic disruption.

Improving risk disclosures

Reliable and relevant valuations and disclosures of the risks to which financial institutions are exposed are important to maintain overall market confidence.

Last updated: 13 June 2022

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