FSB secretary-general outlines 2024 priorities, warns of cyclical and structural risks
March 08, 2024 | Commodity Futures Trading Commission (CFTC), Independent Federal Agency, Executive, Federal
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John Schindler, secretary general of the Financial Stability Board, told the Commodity Futures Trading Commission's Global Markets Advisory Committee on Thursday that the FSB's 2024 work program will concentrate on both cyclical and longer‑term structural vulnerabilities in the financial system.
"The FSB is established to coordinate at the international level the work of the national financial authorities and international standard‑setting bodies," Schindler said, reading a passage from the FSB charter. He framed the FSB's role as identifying vulnerabilities, developing policies to mitigate them, and following up on implementation.
Schindler highlighted four major structural priorities: non‑bank financial intermediation (NBFI), climate‑related financial risks, crypto assets (including global stablecoins), and cross‑border payments. On NBFI, he said the sector has grown from roughly 42% to about 50% of global financial activity over the past decade and poses monitoring and data‑sharing challenges.
On climate risks, Schindler noted the FSB's G20 mandate to create a road map across standard‑setting bodies covering disclosures, data and vulnerabilities, and supervisory approaches. On crypto, he said the FSB and other standard setters have crafted an international framework and that consistent, global implementation is now the priority.
Schindler also described workstreams on CCP resolution, insurance resolution, and short‑term funding markets, and repeated the FSB's focus on improving data to perform vulnerabilities analyses. He said the FSB will publish several deliverables to the G20 this year and urged members to use the political backing of G20 endorsement to overcome legal and implementation hurdles.
In the Q&A that followed, GMAC members pressed the FSB on data‑sharing constraints across jurisdictions, liquidity preparedness for margin and collateral calls, and ways to involve regulators not on the FSB plenary. Schindler said the FSB can invite relevant authorities to working group meetings and acknowledged the difficulty of cross‑jurisdictional data sharing, but said the FSB is preparing recommendations and consultations on margin preparedness and other items.
"The FSB is established to coordinate at the international level the work of the national financial authorities and international standard‑setting bodies," Schindler said, reading a passage from the FSB charter. He framed the FSB's role as identifying vulnerabilities, developing policies to mitigate them, and following up on implementation.
Schindler highlighted four major structural priorities: non‑bank financial intermediation (NBFI), climate‑related financial risks, crypto assets (including global stablecoins), and cross‑border payments. On NBFI, he said the sector has grown from roughly 42% to about 50% of global financial activity over the past decade and poses monitoring and data‑sharing challenges.
On climate risks, Schindler noted the FSB's G20 mandate to create a road map across standard‑setting bodies covering disclosures, data and vulnerabilities, and supervisory approaches. On crypto, he said the FSB and other standard setters have crafted an international framework and that consistent, global implementation is now the priority.
Schindler also described workstreams on CCP resolution, insurance resolution, and short‑term funding markets, and repeated the FSB's focus on improving data to perform vulnerabilities analyses. He said the FSB will publish several deliverables to the G20 this year and urged members to use the political backing of G20 endorsement to overcome legal and implementation hurdles.
In the Q&A that followed, GMAC members pressed the FSB on data‑sharing constraints across jurisdictions, liquidity preparedness for margin and collateral calls, and ways to involve regulators not on the FSB plenary. Schindler said the FSB can invite relevant authorities to working group meetings and acknowledged the difficulty of cross‑jurisdictional data sharing, but said the FSB is preparing recommendations and consultations on margin preparedness and other items.
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