July 03, 2017 04.05PM / Mondo Exchange
The Financial Stability Board (FSB) published today, ahead of the G20 Summit in Hamburg on 7-8 July, a letter from its Chair Mark Carney to G20 Leaders. The FSB is also publishing today its third Annual Report on the Implementation and Effects of the G20 Financial Regulatory Reforms and, to further enhance the analysis in future, a framework for evaluating such effects.
The letter sets out four main points:
The FSB’s Third Annual Report on the Implementation and Effects of the G20 Financial Regulatory Reforms, provides further information on these points, and reports that implementation continues to progress but is uneven across the four core areas of the G20 financial reforms.
The report identifies three areas where authorities need to remain vigilant:
The annual report asks for G20 Leaders’ support to reinforce global regulatory cooperation by:
revising legal frameworks to facilitate cooperation and information sharing
(ii) encouraging full and consistent implementation of standards;
(iii) participating in post-implementation evaluations of the effects of reforms; and
(iv) considering how progress made in agreeing and implementing standards can best be leveraged to preserve an open and integrated system.
The FSB also published today a Framework for Post-Implementation Evaluation of the Effects of the G20 Financial Regulatory Reforms, developed in collaboration with the standard-setting bodies, and with input from external stakeholders and through public consultation. With the main elements of the reforms agreed and implementation of core reforms underway, initial analysis of the effects of these reforms is becoming possible. The framework will guide analyses of whether the G20 reforms are achieving their intended outcomes, and help to identify any material unintended consequences that may have to be addressed, without compromising on the objectives of the reforms. As the FSB Chair’s letter to the G20 notes, dynamic implementation is critical to ensure the reform programme is efficient, coherent and effective.
The FSB has been established to coordinate at the international level the work of national financial authorities and international standard setting bodies and to develop and promote 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. Through its six Regional Consultative Groups, the FSB conducts outreach with and receives input from an additional approximately 65 jurisdictions.
The FSB is chaired by Mark Carney, Governor of the Bank of England. Its Secretariat is located in Basel, Switzerland, and hosted by the Bank for International Settlements.
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