The Financial Stability Board (FSB) has published its work priorities for the year ahead in a letter to G20 finance ministers and central bank governors.
In 2023, the FSB aims to address vulnerabilities in the global economy including non-bank financial intermediation (NBFI), crypto assets and decentralised finance (DeFi) and cross-border payments. Reports on each of these topics will be delivered to the G20 meeting on 24-25 February.
In regard to NBFIs, the report states that a concentration of activities and widespread use of leverage in commodity markets are particular pain points, adding that a lack of transparency in physical and derivatives commodities markets makes these vulnerabilities harder to assess.
The FSB states that DeFi shares the vulnerabilities of traditional finance functions and operations, and may enhance their disruptiveness. During 2023, the board will look for ways to fill data gaps and assess the potential amendments needed to its proposed crypto-asset policy recommendations.
A report on cross-border payments, advising the G20 on the implementation of their roadmap to enhance the process, will be released later this week. Two task forces are being established by the FSB to strengthen the private sector's participation in this roadmap.
Along with these three priorities, the FSB has restated its commitment to working on cyber and operational resilience within the industry and enhancing data and analysis around climate-related financial risks.
