FSB Chair’s letter to G20 Finance Ministers and Central Bank Governors: February 2024

The FSB’s review of lessons from the 2023 bank failures confirmed the soundness of the international framework provided by the FSB Key Attributes of Effective Resolution Regimes. [...] Non-bank financial intermediation (NBFI) The growing importance of NBFI for the financing of the real economy – including for capital flows to emerging market and developing economies (EMDEs) – underscores the need to effectively assess and address vulnerabilities in this sector. [...] As part of its NBFI work programme, the FSB is also working on policies to enhance the monitoring of, and to address financial stability risks stemming from, leverage in NBFI, and to enhance the liquidity preparedness of non-bank market participants for margin and collateral calls. [...] Responding to the G20’s call, in 2024 we will deliver reports on the financial stability implications of the tokenisation of assets and of AI. [...] We will take forward, with SSBs and international organisations, the agreed G20 Roadmap that will support implementation of a coordinated and comprehensive policy and regulatory framework – including implementation in jurisdictions beyond the G20 and accounting for the risks specific to EMDEs.