FSB RCG for Asia discusses cross-border resolution, effects of the reforms, FinTech and RegTech, and efforts to reduce misconduct riskRef No : 14 May 2018 Embargo : For immediate release
The Financial Stability Board (FSB) Regional Consultative Group (RCG) for Asia met in Kuala Lumpur today at a meeting hosted by Bank Negara Malaysia.
Members of the FSB RCG for Asia began by considering vulnerabilities in the global financial system. They exchanged views on the global financial system, noting in particular the high levels of debt. They observed that financial conditions have tightened, but remain supportive of near-term growth. Focusing on emerging Asia, members examined lending trends, comparing in particular, the current period with that immediately prior to the Asian financial crisis in 1997 and before the global financial crisis. They observed that the share of cross-border lending to Asia that is being undertaken by Asian banks is increasing, and considered the reasons for this trend and possible implications.
Members received an update on the FSB’s current and planned activities, the intent of which are to reinforce the G20’s objective of strong, sustainable and balanced growth. Its current work focuses on (i) a vigilant monitoring of emerging risks, including those related to crypto-assets; (ii) completion of the G20’s financial reform priorities, including addressing the decline in correspondent banking relationships, reducing misconduct risk, enhancing the resilience and resolvability of central counterparties and the further development of market-based finance; (iii) pivoting to policy evaluation to ensure that the reforms are operating as intended, and to identify and deliver adjustments where appropriate; and (iv) optimising the FSB’s work to maximise its effectiveness.
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