The Financial Stability Board (FSB) Regional Consultative Group (RCG) for Europe held a virtual meeting recently to discuss global and regional macroeconomic and financial market developments, and their potential impact on European economies. The group exchanged views on financial stability issues during the recovery from the COVID-19 pandemic, including potential threats to regional financial stability arising from the pandemic. Members also discussed authorities’ considerations in exiting from temporary public support measures, when conditions allow.
The group discussed the most recent FSB initiatives to address climate-related risks to financial stability, including promoting consistent regulatory and supervisory approaches to climate risk and identifying gaps in data for monitoring financial stability. Members also discussed promoting greater uptake and consistency in national and regional climate-related disclosures, using the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations as the basis with respect to climate-related financial risks. Members were informed of the FSB’s ongoing work to develop a coordinated roadmap to address climate-related financial risks, which will be submitted to the G20 and published in July.
Members exchanged views on how to strengthen the resilience of money market funds (MMFs) and discussed the FSB’s policy work on assessing and addressing vulnerabilities in MMFs which is a part of the FSB’s overall work programme to strengthen the resilience of non-bank financial intermediation. Given the cross-border nature of MMFs, members discussed the best ways to coordinate regarding reforms to MMFs. Members were informed about the FSB’s upcoming public consultation on policy options for MMFs to be published ahead of the July G20 meetings.
The group also received an update on the FSB’s work programme, including planned deliverables to the G20 in 2021.