The Financial Stability Board (FSB) has published a letter from its Chairman, Mark Carney, which reports on the progress it has made as the G20 Brisbane summit approaches.

The letter makes four key points:

• during the Australian G20 presidency, work remains on track to substantially complete the job of fixing the fault lines that underlay the financial crisis;
• the support of Ministers and Governors is essential to meet the target of ending too-big-to-fail for the Brisbane summit;
• the FSB is building a system that combines common international standards, consistent implementation and where appropriate deferral to each other’s approaches; and
• as we move toward the conclusion of this phase of financial reform, the FSB will adjust focus, away from the design of standards to fix the fault lines that caused the crisis and towards new and constantly evolving risks and vulnerabilities.

In relation to ending too-big-to-fail the letter discusses the following two proposals, on which material progress has been made, but agreement has not yet been reached:

• a common standard for total loss absorbing capacity for globally systemic banks; and
• cross-border recognition of resolution actions regarding contractual stays.

View FSB Chair’s letter to G20 Ministers and Governors on financial reforms – Completing the job and looking ahead, 22 September 2014