The Financial Stability Board (FSB) has published a letter from its chairman that provides an update on its deliverables to the Antalya summit. The letter notes, among other things, the following:

  • the FSB is on track to deliver the first annual consolidated report on the implementation of the financial reforms and their effects, as it committed in Brisbane last year;
  • all 24 FSB jurisdictions have Basel III risk-based capital rules in force and that final rules on liquidity have been issued and are in force in almost all jurisdictions. However, more work appears to be needed in some jurisdictions to align national implementation fully with the Basel framework;
  • national policy measures to end too-big-to-fail are now largely complete for banks, but substantial work remains at national level to implement effective resolution regimes. While all G-SIBs have recovery plans and cross-border crisis management groups, significant work remains to make their resolution strategies and plans fully operational;
  • the implementation of over-the-counter (OTC) derivatives reforms is underway but continues to be uneven and behind schedule. Trade reporting requirements are in place in almost all FSB jurisdictions, although authorities report challenges on the quality and completeness of the reported data and their ability to access, use and aggregate it;
  • the FSB report to the Antalya summit highlights three main areas that merit attention: effects of the reforms on emerging market and developing economies, interaction of reforms on market liquidity and maintaining an open and integrated global financial system;
  • policy measures are progressing that extend the adoption of last year’s ISDA Resolution Stay Protocol to a wider range of financial institutions as well as to broaden its scope beyond OTC derivatives to other financial contracts such as repo;
  • work will continue into next year on a new coordinated work plan to promote central counterparty resilience, recovery planning and resolvability; and
  • the FSB will shortly publish a peer review report that identifies where legal and other blockages to the reporting, sharing and aggregation of key information regarding trades need to be removed. The report will contain an agreed timeline for addressing these blockages and the FSB will be reporting to the summit on specific jurisdictions in which action is required.

View FSB Chair’s letter to G20 on Financial Reforms – Progress on the Work Plan for the Antalya Summit, 6 October 2015