On 5 September 2023, the Financial Stability Board (FSB) published two letters from its Chair, Klaas Knot, addressed to G20 leaders ahead of the New Delhi Summit.

The first letter outlines the work the FSB has undertaken under the leadership of India’s G20 Presidency to address existing vulnerabilities in the financial system and enhance its resilience to structural change.

Highlights include:

  • The March banking-sector turmoil challenged views about the stickiness of deposits and the speed of bank runs. It has also raised questions about the role of social media in those runs. The FSB and the Basel Committee on Banking Supervision, as well as other authorities, are examining the implications of these issues.
  • The FSB will soon publish a report on preliminary lessons learned for resolution and policy priorities going forward.
  • The FSB will deliver a report to the Summit which will describe recent trends in non-bank financial intermediation leverage and identify possible actions to address vulnerabilities.
  • The risks of crypto-assets are not confined to financial stability and include macroeconomic risks. The FSB and the International Monetary Fund are delivering to the Summit a Synthesis Paper that brings together the risks identified by each institution and how they interact.
  • Global exposure to climate risks is becoming more evident. An important milestone in the FSB’s Climate Roadmap has been the publication of the International Sustainability Standards Board disclosure standards.

The second letter provides the G20 leaders with an update on the G20 Roadmap to address the challenges in the area of cross-border payments. The first phase has now been largely completed and in the second phase, the authorities and standard setters have focussed their efforts on projects that will make a difference across various parts of the cross-border landscape and on developing further the partnership with the private sector to work to achieve the Roadmap goals. The second letter underscores the need for continued further political support and sustained effort by the public and private sectors in order to meet the G20 targets by 2027 to make cross-border payments cheaper, faster, more inclusive and more transparent. In October, the FSB will submit to the G20 Finance Ministers and Central Bank Governors its first report with data on progress towards the quantitative targets and its latest annual report on progress in the individual Roadmap actions.