FSB全球金融稳定委员会-Implementation-and-Effects-of-the-G20-Financial-Regulatory-Reforms_-2020-Annual-Report_24页_1mb

Summary of the G20 Financial Regulatory Reforms and Their Effects

Core Content

The G20 financial regulatory reforms, initiated in response to the 2008 financial crisis, have played a crucial role in enhancing the resilience of the global financial system during the COVID-19 pandemic. These reforms have been implemented across various priority areas, including Basel III, over-the-counter (OTC) derivatives, resolution regimes, and non-bank financial intermediation (NBFI). The Financial Stability Board (FSB) has coordinated the implementation of these reforms, working closely with standard-setting bodies (SSBs) to ensure consistency with international standards and to maintain financial stability.

The pandemic has served as a major test of the effectiveness of these reforms. The global financial system has shown greater resilience due to the progress made in implementing the reforms, particularly in the areas of capital and liquidity requirements, resolution planning, and market infrastructure stability. However, the implementation of some reforms has been delayed, and gaps remain, especially in resolution regimes for insurers and central counterparties (CCPs), and in the operationalisation of NBFI reforms.

Main Points

1. Implementation of G20 Reforms

• Basel III: Most core elements have been implemented on time, with some delays in certain jurisdictions. The leverage ratio, Net Stable Funding Ratio (NSFR), and large exposures framework are not yet fully implemented in all FSB jurisdictions.
• OTC Derivatives: Reforms are well-advanced, with legislative frameworks in place for over 90% of relevant transactions. However, trade reporting still faces obstacles in some jurisdictions.
• Resolution Regimes: Implementation of TLAC requirements for G-SIBs is complete, but resolution planning for systemic banks and effective resolution regimes for insurers and CCPs remain to be fully operationalised.
• Non-Bank Financial Intermediation (NBFI): Reforms are ongoing, with MMFs and securitisation being the most advanced areas, but progress is still at an earlier stage compared to other reforms.

2. Effects of the Reforms During the Pandemic

• The resilience of major banks and financial market infrastructures (FMLs) has enabled the system to absorb rather than amplify the macroeconomic shock.
• Monetary, fiscal, and prudential responses have supported the continuity of financial services, including lending, and preserved financial stability.
• Regulatory flexibility has been utilised to ease the impact of the pandemic, including the use of capital and liquidity buffers, temporary measures, and delayed implementation deadlines.
• The FSB evaluation indicates that too-big-to-fail (TBTF) reforms have made banks more resilient and resolvable, delivering net benefits to society.

3. Challenges and Gaps

• Implementation delays are observed in some jurisdictions, particularly in Basel III and resolution planning.
• Gaps in the use of flexibility by financial institutions, especially in capital and liquidity buffers, require further attention.
• Limited transparency on TLAC distribution within groups and insufficient information on resolution regimes for insurers and CCPs remains a challenge.

4. Looking Ahead

• The FSB and SSBs will continue to monitor and evaluate the effectiveness of reforms and identify lessons learned from the pandemic.
• Global regulatory cooperation is essential to ensure the timely and consistent implementation of reforms and to maintain a level playing field.
• The extension of implementation deadlines has been a necessary measure to allow for a coordinated response to the pandemic, but the eventual exit from temporary measures will require careful planning.

Key Information

• The FSB coordinates the implementation of financial regulatory reforms at the international level.
• The G20 reforms have supported the global financial system in maintaining stability and resilience during the pandemic.
• Flexibility in existing standards has been used to respond to the crisis, but there are concerns about the actual use of this flexibility by financial institutions.
• The FSB Principles guide the pandemic response, ensuring that regulatory actions remain consistent with international standards.
• Coordination between jurisdictions is critical to avoid market fragmentation and to ensure a unified approach to reform implementation.

Conclusion

The G20 financial regulatory reforms have been instrumental in supporting the global financial system during the pandemic. While significant progress has been made, gaps remain in the implementation and effectiveness of certain reforms. The FSB and SSBs will continue to monitor and evaluate the reforms, identify lessons learned, and promote international cooperation to ensure long-term financial stability.