The Financial Stability Board discusses financial vulnerabilities

The Financial Stability Board (FSB) held a meeting of Regional Consultative Group (RCG) for the Americas to discuss financial vulnerabilities.

Members discussed issues such as elevated debt levels for many private and public sector borrowers in an environment where “lower for longer” interest rates are expected in advanced economies. It was noted that the low interest rate environment might increase appetite for riskier financial asset.

FSB reaffirmed the importance of authorities designing integrated policy responses.

An update to FSB’s ongoing work and plans for 2020 were also mentioned. It also discussed the work of its working group on non-bank financial intermediation which compiles annual data on the size of NBFI activity in the region and discusses associated policy issues.

Members also talked about stablecoins and their implications to financial stability. They agreed that stablecoin projects, particularly those of global reach and magnitude should meet the highest regulatory standards and supervision.

The group also mentioned its ongoing efforts to develop an effective practice fir cyber incident response and recovery on which FSB will consult in early 2020.

Finally, the group showed support for a set of recommendations which have been developed by a working group of FSB and RCG members to enhance the effectiveness of RCGs as an outreach and feedback method.

Copyright © 2019 FinTech Global

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