On October 5, 2015, the chair of the Financial Stability Board, Mark Carney, wrote a letter to the G20 Financial Ministers and Central Bank Governors on the FSB’s progress on the financial reforms program. The letter includes information on the FSB’s continuing work to finalize post-crisis reforms and states that the FSB will soon deliver its first annual consolidated report on the implementation of financial reforms, which informs, amongst other things, that all 24 FSB member jurisdictions have implemented Basel III capital rules and that liquidity rules in almost all those jurisdictions are also in force. The FSB acknowledges that much work remains to be carried out at national level to implement effective resolution regimes, though international policy measures to end too-big-to-fail are now largely complete for banks. OTC derivatives reforms and their implementation are behind schedule but nevertheless underway and the FSB aims to publish a peer review report that will identify where blockages need to be removed for the reporting, sharing and aggregation of key information for trades. Policies on money market funds and incentive alignment approaches for securitization in relation to the shadow banking system are progressing, though the FSB considers that significant steps must still be taken to transform shadow banking into a resilient market-based finance.

The letter is available at: http://www.financialstabilityboard.org/wp-content/uploads/FSB-Chairs-letter-to-G20-Minsand-Govs-5-October-2015.pdf