G20's Financial Stability Board Raises Alarms on Non-Bank Vulnerabilities
Monday, 22 July 2024, 09:18
Vulnerabilities in Non-Bank Financial Institutions
The global financial landscape has seen uneven progress in reforms aimed at enhancing the safety of money market funds and other non-bank financial institutions, as reported by the Financial Stability Board (FSB).
Current Concerns
- The FSB indicates that many vulnerabilities contributing to previous financial disruptions, such as the urgent liquidity needs during the initial COVID-19 lockdowns, remain unresolved.
- G20 nations must address these vulnerabilities to prevent future shocks to the financial system.
Call to Action
Chair Klaas Knot has urged central bankers and finance ministers to accelerate the implementation of vital reforms, warning that we may be losing momentum. Immediate action is essential to safeguard the global financial stability.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.