Financial Stability Board (FSB)

To maintain the momentum in expanding legal entity identifier adoption, particularly for cross-border payments, the FSB reiterates its 2022 recommendations and advocates their full and timely implementation. Our progress report on the implementation of the #LegalEntityIdentifier has more. https://bit.ly/4f17oWo Global Legal Entity Identifier Foundation (GLEIF)

We have made progress against our priority actions to make cross-border payments faster, cheaper, more transparent and more inclusive. However, while more than half of the priority actions have been completed, our key performance indicators suggests that the work done so far is not yet sufficient and that further efforts are needed to meet the G20 targets for cross-border payments. We remain strongly committed to achieving tangible results by completing the priority actions, encouraging implementation by both the private and public sector, and identifying ways to facilitate greater progress. Read our reports to find out more: ▶️ G20 Roadmap for Enhancing Cross-border Payments: Consolidated progress report for 2024 https://bit.ly/3AhbJ8r ▶️ Annual Progress Report on Meeting the Targets for Cross-border Payments: 2024 Report on Key Performance Indicators https://bit.ly/48hExuh ▶️ Implementation of the Legal Entity Identifier: Progress report https://bit.ly/4f17oWo #CrossBorderPayments #G20 #remittances

It was a packed few days for our colleagues in Washington DC last week! Our Chair Klaas Knot joined IMF Managing Director Kristalina Georgieva and other eminent speakers on a panel debate on the global economy at the #IMFMeetings, where he talked about the challenges facing the global economy and policies to boost growth and to reduce debt. 📽️ Watch the recording here: https://bit.ly/4fjlqlO Mr Knot also joined the Institute of International Finance (IIF) 2024 Annual Membership Meeting for a fireside chat moderated by IIF’s Managing Director Andres Portilla. Our Secretary General John Schindler spoke at an IIF session on AI, financial stability and digital trust. Martin Moloney, our Deputy Secretary General, took part in an IIF panel discussion on navigating the evolving cybersecurity policy and regulatory landscape. Last but not least, we also held a meeting of our Steering Committee. The Steering Committee provides operational guidance between Plenary meetings to carry forward the directions of the FSB and prepare the Plenary meetings in order to allow the Plenary to efficiently fulfil its mandate. ▶️ Learn more about the FSB Governance: https://bit.ly/4flSWI3

We have recently published our key performance indicators (KPIs) for cross-border payments: https://bit.ly/48hExuh The KPIs provide insights on important dimensions of how users experience payments across three market segments: 1️⃣ wholesale payments 🏦 2️⃣ retail payments 👤 3️⃣ remittances🌎 What does our latest KPI report tell us? 🤔 Overall, at the global level, the KPIs show limited progress toward achieving the targets set by the G20’s Roadmap for Enhancing Cross-Border Payments. Differences across regions and corridors remain. Some regions continue to face greater challenges, particularly in meeting the targets set for cost and speed. These results are not surprising, as it will take time for the actions carried out under the Roadmap to materialise and for the industry participants to adapt, so that clear improvements are perceived by the end users of cross-border payments. Interested in more? ▶️ The report 📘 and full KPI data 📈 are available at this link: https://bit.ly/48hExuh ▶️ Here is the G20’s Roadmap for Enhancing Cross-Border Payments: https://bit.ly/4eVqZak #CrossBorderPayments #Payments #WholesalePayments #RetailPayments #Remittances #KPIs #G20

While the scale of tokenisation based on distributed ledger technology (DLT) is currently small, a number of firms are investing in tokenisation projects. Public-sector authorities are also assessing whether tokenisation offers benefits for financial systems or increases risks to investors and financial markets. https://lnkd.in/efrUK5C4 Vulnerabilities of DLT-based tokenisation relate to: 💠 the underlying reference asset that has been tokenised; 💠 the participants in DLT-based tokenisation projects; and 💠 new technology and its interaction with legacy systems. Taken together, these factors can amplify many of the same vulnerabilities as in traditional finance. Due to its small scale, tokenisation does not currently pose material risks to financial stability. However, financial stability concerns could become prominent if tokenisation scales and if the identified vulnerabilities are not adequately addressed through oversight, regulation, supervision, and enforcement. #FinancialStability #Tokenisation #DLT #FSB #DigitalToken #DistributedLedger

ICYMI - Our regional consultative group for Asia, made up of member and non-member authorities in the region, recently met in Hong Kong SAR. Find out what they discussed: https://bit.ly/3AcsYrv #FSB #Asia #Crypto #Tokenisation #Fraud

⚡ A year and a half ago, the banking sector suffered the most serious disruption in more than a decade. 🔎 We took a closer look at bank runs in those years, including the notable cases of Credit Suisse and Silicon Valley Bank. While they happened in different jurisdictions and affected banks that were very different in terms of size, type etc, we found that those bank runs had some remarkable similarities. ➡️ This has implications for risk management, supervision and resolution. 📘 Find out more in our report: https://lnkd.in/ewV8iMr5 #CreditSuisse #SVB #BankRuns #RiskManagement #Resolution

The implementation of policies and regulation for #CryptoAssets continues to be ighly relevant. Nearly all FSB member jurisdictions have plans in place to develop new or revise their existing regulatory frameworks for crypto-assets and stablecoins, or they already have those frameworks in place. A majority of FSB member jurisdictions and about half of the non-FSB regional consultative group member countries expect to reach alignment with the FSB framework by 2025. https://bit.ly/48d293f In our status report we cover: ✔️ work on implementation of policy frameworks; ✔️ outreach beyond G20 jurisdictions; ✔️ global cooperation and coordination; and ✔️ addressing data gaps. Find out more about our Global Regulatory Framework for Crypto-asset Activities here: https://bit.ly/3YzQs3a #Crypto #Stablecoins #CryptoRegulation #CryptoRisks #FSB #FinancialStability International Monetary Fund

Since its introduction in 2012, the Legal Entity Identifier (LEI) – a global unique identifier for legal entities – has been widely adopted worldwide, in particular in over-the-counter (OTC) derivatives and securities markets. Today, there are 2.6 million worldwide, a testimony to the usefulness of the LEI in bringing transparency and efficiency across financial markets. ▶️ Learn more in our progress report https://bit.ly/4f17oWo The LEI could bring substantial benefits to cross-border payments too, for example by strengthening data standardisation as well as assisting know-your-customer (KYC) processes, and sanctions screening. However, LEI adoption in cross-border payments is lagging. Costs, particularly in low-income jurisdictions, and the lack of perceived incentives for voluntary adoption by market participants and end users are among the factors preventing wider adoption of the LEI. Some jurisdictions have made no tangible progress towards putting into practice the FSB’s recommended actions to increase LEI adoption in cross-border payments. To keep progress going and increase the use of the LEI in the financial system, especially for cross-border payments, we reiterate our 2022 recommendations and urge their complete and prompt implementation. ▶️ Read our recommendations https://bit.ly/4fgonU7 Global Legal Entity Identifier Foundation (GLEIF)

FSB Chair Klaas Knot stressed the importance of maintaining political commitment to financial stability in a world that is shaped by technological disruption and political and economic fragmentation. https://bit.ly/4dWs5Bk Speaking at Bloomberg's Global Regulatory Forum, Mr Knot recalled how around 15 years ago, leaders from the 20 largest nations in the world decided on a massive strengthening of regulation to address the weaknesses in the global financial system and to curb excessive risk taking. At that time, G20 leaders also endorsed the mandate of the Financial Stability Board to coordinate and monitor progress. ▶️ More on the history of the FSB: https://bit.ly/3BWeEE7 The reforms agreed back then did substantially strengthen the global financial system, and a lot of work has been done since by the FSB and other standard-setters. However, implementation is still lagging in some cases. “For one thing, the final Basel III standards still need to be implemented in many jurisdictions.” And “13 years after the FSB issued its Key Attributes for Effective Resolution Regimes, authorities still face challenges in dealing with failing banks.” ▶️ More on the FSB's Key Attributes for Effective Resolution Regimes https://bit.ly/48aUmTh Implementation of agreed standards is also key to address vulnerabilities stemming from non-bank financial intermediation (NBFI). The FSB and other standard setters have already issued several policy recommendations to deal with non-banks’ liquidity mismatches, leverage, and inadequate margin preparedness. “[…] authorities must not only put them into national laws and regulations, they must also have the capacity to operationalize them.” ▶️ More on our work on NBFI https://bit.ly/3YzdlUB The current environment, shaped by technological disruption and increased political and economic fragmentation, complicates the task. However, “Financial regulation is not an obstacle, it is an enabler of sustainable, long-term growth.” This is why – noted Mr Knot - it is important to maintain ambition and take the agreed policies all the way through to implementation. #FinancialStabilityBoard #FinancialRegulation #BaselIII #Basel3 De Nederlandsche Bank