Ahead of the G20 summit in Hamburg on 7 – 8 July, the Financial Stability Board (FSB) has published a letter reporting on the progress that has been made and the main issues that require the attention of the G20 leaders. At the same time the FSB has published its third Annual Report on the Implementation and Effects of the G20 Financial Regulatory Reforms which provides further information on the points raised in the letter.

Among other things the report identifies three areas where authorities need to remain vigilant:

  • maintaining an open and integrated global financial system: such a system has major benefits, provided the system as a whole is resilient against shocks. Areas where co-operation might be enhanced should continue to be identified and addressed;
  • market liquidity: there continues to be limited evidence of a broad reduction in market liquidity in normal times, but continued monitoring and analysis, including of liquidity during periods of stress, is needed; and
  • the effects of reforms on emerging market and developing economies (EMDEs): some EMDEs continue to report implementation challenges and concerns from the reduction in global banks’ activity in their domestic markets. To date, however, these do not seem to have significantly impacted their overall credit growth.

View FSB reports to G20 leaders on progress in financial regulatory reforms, 3 July 2017