Financial Stability Board Reports To G20 Leaders On Financial Regulatory Reform Progress

At  the  Los  Cabos  Summit  today,  G20  Leaders  endorsed recommendations to  put  the
Financial Stability Board (FSB) on an enduring organisational footing, with legal personality and
greater financial autonomy. They also endorsed the FSB’s amended Charter, which strengthens the FSB’s role in coordinating international standard setting and in monitoring implementation of
agreed policies and international standards at the national level. Leaders called for full
implementation of the recommendations by the next G20 Summit in September 2013.

The Chairman of the FSB, Mark Carney, welcomed the Leaders’ endorsement, noting that “These steps will enable the FSB to play a more continuous and visible role in crisis prevention, coordination of international standard setting, review of regulatory policies, and comprehensive monitoring of members’ implementation of agreed policies. As it institutionalises, the FSB intends to maintain its lean structure, its member-driven character, and its tight connection to the G20”.

In his remarks to the Summit, Mr Carney reported on the progress made by the FSB and its members in developing and implementing the broad programme of financial reforms mandated by the G20. He stressed the importance of timely, full and consistent implementation of agreed reforms in order to restore confidence and trust in the financial system and preserve the advantages of an open and globally integrated financial system. “Recent experience demonstrates that when market participants and authorities lose confidence in the strength of financial institutions and markets in other countries, the retreat from an open and integrated system can occur rapidly.”