FSB Chair urges G20 progress on NBFI vulnerabilities

The Financial Stability Board (FSB), an international body that monitors and makes recommendations about the global financial system, reports that FSB Chair Klaas Knot has written to G20 finance ministers and central bank governors, ahead of a G20 meeting set for July 25–26, 2024. In his letter, Chair Knot highlights high debt levels and vulnerabilities in non-bank financial intermediation (NBFI) as key risks to financial stability. He also cites uneven progress in implementation of agreed NBFI policies and notes a need to timely finalize them.

The letter covers two reports the FSB is delivering to the G20 — a stocktake on regulatory and supervisory initiatives related to the identification and assessment of nature-related financial risks, which was published last week; and the FSB’s annual progress report on its work to enhance resilience in NBFI, delivered together with the letter.