The Financial Stability Board (“FSB”) has recently published the following documents that were delivered to G20 leaders attending the Brisbane Summit (the G20 Leaders’ Summit is the principal forum for international economic cooperation and decision-making. As an annual event, the G20 gives world leaders the chance to share ideas and outline visions regarding key international issues):
- A letter from the FSB Chairman to G20 leaders addressed the following four points:
- The Chairman believes that measures are now in place to fix the fault lines that caused the global financial crisis.
- ‘Too big to fail’ banks will no longer be subsidised by the public and will not be allowed to cause disruption to the financial system.
- The FSB is looking to identify and resolve new sources of potential financial risk and generally promote financial stability.
- A call for support for G20 leaders to maintain an open global financial system based on trust. Each country should be accountable for their own financial systems, whilst ensuring they implement the minimum agreed international standards.
- A report to the G20 on the FSB’s review of the structure of its representation, in which it outlines proposals to strengthen the voice of emerging markets and developing economies such as Argentina, Indonesia, Saudi Arabia, South Africa and Turkey.
- A shadow banking report which summarises progress made to address the fault lines that contributed to the global financial crisis:
- monitoring developments in the shadow banking system with a view to identifying risks; and
- developing measures to reduce excessive build-up of leverage in the system.
- A comprehensive overview report which sets out progress so far on the implementation of the financial reforms.
Please click here to access the full versions of the documents.
Should you require any further advice or information on the above, Cleveland & Co, your external in-house counsel, are here to help.