FSB to G20: G20 reforms are building a safer, simpler, fairer financial system

In a published letter from its Chair Mark Carney to G20 Leaders, ahead of the G20 Summit in Hamburg on 7-8 July, the Financial Stability Board (FSB) said that G20 reforms are building a safer, simpler, fairer financial system.

Key quotes:

• Banks are considerably stronger, more liquid and more focused
• The greater resilience is being achieved without impeding the supply of credit to the real economy
• Some unfinished business to finalise and implement reforms merits attention
• The financial system is evolving, so the FSB will continue to scan the horizon to identify, assess and address new and emerging risks to financial stability
• G20 countries now have a strategic opportunity to build on this foundation to create an open, global financial system
• Doing so would further support the cross-border investment needed for strong, sustainable and balanced growth across the G20
• The effects of reforms on emerging market and developing economies (EMDEs): Some EMDEs continue to report implementation challenges and concerns from the reduction in global banks’ activity in their domestic markets