FSB has published a letter to G20 reporting on the progress being made in financial regulatory reforms in advance of the Antalya Summit. It sets out four key points:
- the implementation of agreed reforms has substantially strengthened the resilience of the global system;
- FSB has now finalised the tools needed to end “Too Big To Fail” (TBTF) in the banking sector. The letter covers the tools needed to end TBTF for both banks and outside of the banking sector;
- G20 must remain vigilant to new risks and vulnerabilities, such as those stemming from market-based finance, and changes in market structure and liquidity; and
- FSB is placing greater emphasis on the impact of reforms on emerging and developing economies such as the calibration and phase-in of the total loss absorbing capacity (TLAC) standard.