The FSB has issued a press-release reporting to the G20 Leaders at the Seoul Summit on the progress and next steps in the implementation of the G20 recommendations for strengthening financial stability. The FSB has issued:
- A letter from the FSB Chairman to the G20 Leaders.
- A policy framework for reducing the moral hazard posed by systemically important financial institutions.
- A report on progress in the implementation of the G20 recommendations for strengthening financial stability.
Also reported is that the G20 Leaders have endorsed the Basel Committee’s new bank capital and liquidity framework and committed to adopt and fully implement the framework within the agreed time frame. The FSB has also reported on the progress made since the Washington Summit in November 2008. This includes:
- System-wide oversight arrangements at national, regional and international levels.
- Measures to improve core market infrastructures.
- Expansion of the regulatory perimeter to include the OTC derivatives markets, hedge funds and credit rating agencies.
- Supervisory tools to raise standards of governance, risk management and capital conservation at financial institutions.