FSB RCG for Asia discusses the design and use of crisis simulation exercises, SME financing and climate-related financial risksRef No : 14 Jun 2019 Embargo : For immediate release
The Financial Stability Board (FSB) Regional Consultative Group (RCG) for Asia met in Kuala Lumpur on 14 June 2019 at a meeting hosted by Bank Negara Malaysia.
Members of the FSB RCG for Asia considered vulnerabilities and regional financial stability issues. Meeting participants discussed risks from global trends, including the resumption of upward prices in risky assets, a loosening of credit standards and increases in the cost of credit. At the same time, they noted that resilience in the global financial system appears to have increased, financial markets are functioning robustly and financial conditions in emerging markets have stabilised. In spite of these positive trends, they agreed that efforts must continue to minimise the probability of another financial crisis, particularly given the increasing level of interconnectedness in the global financial system.
The group received an update on the FSB’s work programme, and in particular on market fragmentation, financial innovation and FinTech credit, as well as cyber incident response and recovery. Discussions on market fragmentation centred around the FSB’s recently published report on the subject and instances where reducing market fragmentation might have a positive impact on financial stability, or improve market efficiency without any detrimental effect on financial stability.
Please click on this link for the full press release on FSB website.
Bank Negara Malaysia
14 Jun 2019
© Bank Negara Malaysia, 2019. All rights reserved.