FSB has published its first annual report to G20 on the implementation and effects of the G20 financial regulatory reforms. It describes progress by FSB member jurisdictions in implementing the financial reforms agreed in the wake of the global financial crisis; presents early analysis on the effects of those reforms; and highlights areas for closer monitoring. The report notes that implementation progress across the breadth of reforms has been steady but uneven, with implementation of the Basel III reforms to bank capital and liquidity ahead of schedule, over-the-counter (OTC) derivatives reform well under way but behind schedule, shadow banking reforms at an early stage, and substantial work remaining to implement effective resolution regimes. The report identifies three areas that merit close ongoing attention:
- spill-overs on some emerging market and developing economies from the implementation of reforms in home jurisdictions of global financial institutions;
- the maintenance of an open and integrated global financial system in the aftermath of the financial crisis; and
- the causes and financial stability consequences of recent shifts in liquidity in fixed income markets.
The report includes a table depicting the status of implementation progress by FSB jurisdiction across priority reform areas. (Source: FSB Reports on G20 Financial Regulatory Reforms)