Global financial reforms - Financial Stability Board reports to G20 on progress

This past Saturday the Financial Stability Board (FSB) published its report to G20 Finance Ministers and Central Bank Governors at their meeting in Paris.

The report sets out the most recent progress on the implementation of the G20 recommendations for strengthening financial stability.

The G20 Finance Ministers and Central Bank Governors recommitted to pursuing the reform of the financial sector. To do this the G20;

• will implement fully the new Basel III standards for banks within the agreed timelines,
• issued a call for completion by the November 2011 G20 Summit of ongoing policy work on systemically important financial institutions, 
• will implement in an internationally consistent and non-discriminatory way the FSB’s recommendations on OTC derivatives and on reducing reliance on credit rating agencies’ ratings,
• urged all jurisdictions to fully implement the FSB principles and standards on sound compensation practices, and looks forward to ongoing monitoring, including the publication of the FSB’s second peer review in mid-2011, and
• looks forward also to the preparation by the FSB by mid-2011 of recommendations on regulation and oversight of the shadow banking system.

The FSB has been established to coordinate at the international level the work of national financial authorities and international standard setting bodies and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies in the interest of financial stability.