Amid Resilience, FSB Focusing on Low Rates, Digital Disruption

The global financial system is resilient, with large banks much better capitalized, less leveraged and more liquid, according to the Financial Stability Board’s report on post-crisis reforms issued today. Amid these favorable conditions, the FSB outlined how it is looking at evolving risks to the global financial system.

Key areas of focus for the Basel, Switzerland-based group include monitoring the effects of a period of prolonged low interest rates; addressing the implications of digital transformation in finance, including crypto-assets, the growth of nonbank fintech firms and the entry large nonbank tech companies into finance; and enhancing global regulatory cooperation.