On 11 November 2022, the Financial Stability Board (FSB) published a letter from its Chair, Klaas Knot, to G20 leaders ahead of their Summit in Bali on 15-16 November.

The letter sets forth that developments since the Rome Summit have been a stark reminder that global financial stability should not be taken for granted. So far, the global financial system has remained resilient. However, there is no room for complacency as current conditions are unprecedented in a number of respects. The current tightening is occurring in a global financial system where the provision of finance through non-banks has become as important as bank credit.

The FSB will deliver a set of proposals at the Summit, in order to address systemic risk in non-bank financial intermediation (NBFI). In 2023, the FSB will deepen its analysis and horizon scanning of vulnerabilities in NBFI, with a particular focus on hidden leverage, and will then work to address identified issues. It will also take steps to tackle liquidity mismatches in investment funds and ensure better preparedness of market participants for sudden spikes in demand liquidity.

Furthermore, the FSB has continued to work to enable the financial system to adapt to secular changes by:

Work in the above areas will continue under the Indian G20 Presidency in 2023.