The Financial Stability Board (FSB) Plenary recently met to discuss key priorities for global financial stability. Among the agenda items, Andrew Bailey, governor of the Bank of England was confirmed as the next FSB Chair for a three-year term.
In addition, members discussed vulnerabilities in the global financial system, issues related to non-bank financial intermediation (NBFI), crypto-assets, climate-related financial risks, and resolution.
On NBFI, the FSB noted that taking recommendations forward “depends heavily on reliable data”. In the course of its work, the FSB has identified several data challenges that have hindered the effective assessment of nonbank sector vulnerabilities by authorities. The FSB has set up a high-level task force, the Nonbank Data Task Force – chaired by incoming FSB Chair Andrew Bailey – to address these challenges. The Plenary received an update on the Taskforce’s work and approved a near-term focus on use of leverage in government bond markets.
The FSB will publish a report in July detailing progress on its overall NBFI work programme, and a report outlining its workplan to address nonbank data challenges.