While good progress has been made in implementing the recommendations by the Financial Stability Forum(FSF) in April, we urge private-sector players, national supervisory authorities and international bodies to rapidly implement all FSF recommendations to strengthen resilience of the financial system.
We recognize that structural banking reforms can facilitate resolvability and call on the FSB, in collaboration with the IMF and the OECD, to assess cross-border consistencies and global financial stability implications, taking into account country-specific circumstances, and report to our next Summit.
Recognizing that structural banking reforms can facilitate resolvability, they called on the FSB, in collaboration with the IMF and the OECD, to assess cross-border consistencies and global financial stability implications, taking into account country-specific circumstances, and report to the next Summit.
In the face of renewed strains on financial markets, we, the Finance Ministers and Central Bank Governors of the G-7, affirm our commitment to take all necessary measures to support financial stability and growth in a spirit of close cooperation and confidence.
At the fifth G20 Summit on Financial Markets and the World Economy, held in Seoul in November 2010, the participating countries agreed to ask the Financial Stability Board(FSB) to formulate proposals to strengthen the regulations and supervision for shadow banking.
In order to help countries work together to curb illegal activities, the Financial Stability Board, an international body of financial regulators, published a directory of cryptocurrency regulators in April, which will be submitted to the G-20.
And a new report by the Financial Stability Board warns that AI doesn't have a lot of data from past financial crises, and might not behave in a suitable way if another Great Recession or similar crash were to happen.
Since 2014, efforts have been made on interest rate benchmark reform based on the recommendation by the Financial Stability Board(FSB) to promote the usage of interest rate benchmarks in ways suited to the characteristics of financial instruments and financial transactions.
We recognize potential risks to financial stability arising from liability structure distortions in corporate balance sheets and ask the FSB, in coordination with other international organizations, to continue to explore any systemic risks and consider policy options.
With economic and monetary stabilization measures by the administration and super-quantitative easing by the FRB, the stock market prices, which had been plunging, bottomed out in the spring of 2009, and the economy started on a recovery trend a few months later.
Based on such understanding, the Bank's disclosure of the challenges and risks involved in ensuring financial stability, through the publication of the Financial System Report, and its responses to these issues, through on-site examinations and off-site monitoring, are considered part of macroprudential policy.
In that sense, if we define our interests, for example, for the United States the way Britain defined its interests in the 19th century, keeping an open trading system, keeping a monetary stability, keeping freedom of the seas-- those were good for Britain, they were good for others as well.
Also, the central bank needs to carefully consider the possible impacts of central bank digital currencies on financial stability and financial intermediation, especially if they could substitute for not only cash but also bank deposits.
We endorse the Financial Stability Board(FSB) policy recommendations to address structural vulnerabilities from asset management activities, ask the International Organization of Securities Commissions(IOSCO) to develop concrete measures for their timely operationalisation and ask the FSB to report on the progress of this work by the Leaders Summit in July 2017.
We will continue to support Financial Stability Forums ongoing work to promote and review progress on the implementation of international standards, particularly the new process concerning offshore financial centres that was agreed in March 2005, and the OECD's high standards in favour of transparency and exchange of information in all tax matters.
Draghi was also Italian Executive Director of the World Bank, Governor of the Bank of Italy, a member of the governing council of the European Central Bank, a member of the board of directors of the Bank for International Settlements, and a member of the boards of governors of the International Bank for Reconstruction and Development and the Asian Development Bank, and Chairman of the Financial Stability Board.
In this report, it makes a forward-looking assessment of the stability of the financial system from various angles-- including analyses of the balance between financial institutions' risks and financial bases, macro stress testing, and the monitoring of risk indicators that suggest signs of financial imbalances-- and presents tasks and challenges toward achieving financial stability.
We agreed that all members will adopt the new standards and these will be phased in over a timeframe that is consistent with sustained recovery and limits market disruption, with the aim of implementation by end-2012, and a transition horizon informed by the macroeconomic impact assessment of the Financial Stability Board(FSB) and BCBS.
In identifying possible risks to financial stability, a few participants expressed concern that credit conditions in some sectors--most notably the agriculture sector--might have eased too much amid signs that investors in these markets were aggressively taking on more leverage and risk in order to obtain higher returns.
As there is only a limited number of experts available both in national authorities and in international organisations, we call on the Financial Stability Forum to consider methods to improve the coordination of technical assistance, including the possibility of establishing a clearing mechanism for this purpose at the international level to ensure that technical assistance is coordinated and to make best use of all available resources.
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