The Financial Stability Board (FSB) Regional Consultative Group for Asia (RCG Asia) discussed the recent financial market developments and their impact on the region, the role of non-bank financial intermediation (NBFI) in Asia and the development of an effective global regulatory framework for crypto-assets.
Recent turmoil in the banking sector has led to a more challenging outlook for global financial stability. Members discussed the implications of these developments for financial stability in the region. Recent events have also highlighted the continuing importance of addressing vulnerabilities in the NBFI segment. Members discussed the increasing role of NBFI in the region and steps being taken to enhance the resilience of the sector.
The G20 has charged the FSB with the development of an effective and comprehensive regulatory framework for crypto-assets. Members shared experiences and developments in regulating crypto-assets, intermediaries and markets in their jurisdictions and recognised the need to mitigate the risks that may arise from them. They acknowledged the FSB’s recommendations for the regulation, supervision and oversight of crypto-assets and markets and its recommendations targeted at global stablecoin arrangements.
The group also received an update on FSB work priorities for 2023, including its other deliverables to India’s G20 Presidency.
Re-disseminated by The Asian Banker