The global financial system has weathered the pandemic due to greater resilience, supported by the G20 reforms, and a “swift, determined and bold international policy response,” according to a new interim report from the Financial Stability Board.
As the annual summit of G20 finance ministers and central bank governors kicks off in Italy today, the Financial Stability Board released its roadmap for global regulatory coordination on climate-related financial risks.
Federal Reserve Vice Chairman Randal Quarles told the Senate Banking Committee today that he sees the overall risks to financial stability as “moderate,” but that there are some risks around nonbank financial institutions.
While risky asset prices have been rising relative to historical norms—and thus vulnerable to significant declines—other measures of financial stability have remained stable over the past several months, according to the Federal Reserve’s latest financial stability report released today.
The ABA Foundation invites entries for the ninth annual Community Commitment Awards, which recognize and promote extraordinary bank commitment to communities and the innovative, high-impact programs that improve the quality of life for customers and the communities banks serve.
The Basel Committee today published two papers on climate-related risk that will serve as a “conceptual foundation” as the committee works to incorporate climate risk into the Basel regulatory framework.
In a comment letter today, ABA told the Securities and Exchange Commission that any reform of money market funds should not focus on regulated banks, which have been a source of strength during the pandemic.
The Financial Stability Board is in the process of building a “roadmap” to coordinate work being done on climate-related financial risks, FSB Chair and Federal Reserve Vice Chairman for Supervision Randal Quarles wrote in a letter to G-20 finance ministers today.
Treasury Secretary Janet Yellen today flagged climate change as the most significant urging risk for the Financial Stability Oversight Council to address, noting that “our financial system must be prepared for the market and credit risks of these climate-related events.”
Following significant liquidity strains—particularly among money market mutual funds—at the outset of the COVID-19 pandemic last March, the Financial Stability Board will publish a report in July outlining “consequential policy proposals” to improve MMF resilience.