Financial Stability Board

ICYMI - Speaking at Insurance Europe's 16th International Conference last week, our Secretary General, John Schindler, highlighted key vulnerabilities - from geopolitical shifts to private credit - threatening the outlook for global financial stability.
Read his speech - 🔗 https://bit.ly/4tUiByl

🌍 Our Regional Consultative Group for Europe (RCG Europe) convened on 2-3 June in Vienna, hosted by the Oesterreichische Nationalbank.
https://bit.ly/3RLDM8y

The meeting was co-chaired by Antoine Martin, Vice Chairman of the Governing Board of the Swiss National Bank, and Marja Nykänen, Member of the Board of the Suomen Pankki - Finlands Bank. Key discussions focused on:
🔹 FSB work priorities for 2026
🔹 Global and regional vulnerabilities
🔹 Liquidity mismatches in private credit funds
🔹 Financial stability implications of advanced AI models
🔹 System-wide exploratory stress testing

We extend our gratitude to the Oesterreichische Nationalbank for their warm hospitality.

Learn more about our regional consultative groups and their role in fostering global collaboration:
https://bit.ly/3ZWvYCX

At their recent meeting in London, FSB Members expressed their concern over a complex risk landscape characterised by:

💠 High asset valuations and compressed risk premiums;
💠 Elevated sovereign debt and shortening debt maturities;
💠 Growing usage of private credit, with parts of the sector untested in a prolonged downturn;
💠 Risk of operational outages at critical nodes in the financial system;
💠 Prolonged conflict in the Middle East;
💠 The unveiling of powerful frontier AI models.

Find out more: https://bit.ly/4uKvBrO


Bank of England

The FSB Plenary met on 1 June in London.

At the meeting, hosted by the Bank of England, Members expressed particular concern that a combination of shocks could concurrently trigger multiple vulnerabilities, threatening financial stability.

While key vulnerabilities remain elevated, the conflict in the Middle East and the unveiling of powerful frontier AI models have further complicated the risk landscape.

Members reviewed progress on several of the FSB’s workstreams, including regulatory and supervisory modernisation, the FSB’s implementation monitoring review, and addressing data challenges relating to nonbank financial intermediation.

Find out more: https://bit.ly/4uKvBrO

🗣️ Our Secretary General, John Schindler, delivered a keynote speech at Insurance Europe’s 16th International Conference.

Focusing on the theme of conference, “Building Resilience in an Uncertain World”, Mr Schindler outlined the growing vulnerabilities to the global financial system and the work of the FSB to maintain global financial stability.

Key topics included:
🔹The impact of geopolitical and economic shifts
🔹Vulnerabilities in sovereign debt and private credit markets
🔹The insurance sector's critical role in fostering global stability

As Mr Schindler emphasised, "The insurance sector, with its unique capacity to manage risks and support economic stability, is an indispensable pillar of the global financial system."

Read his speech here: https://bit.ly/4tUiByl

🌎 Our Regional Consultative Group for the Americas convened on 19-20 May in Grand Cayman, hosted by the Cayman Islands Monetary Authority.
https://bit.ly/49O65t5

The meeting was co-chaired by Lisa D. Cook, Governor, US Board of Governors of the Federal Reserve System, and Jide Lewis, Deputy Governor of the Bank of Jamaica, and covered the following topics:
🔹 FSB work priorities for 2026
🔹 Global and regional financial vulnerabilities
🔹 Operational resilience, including cyber risks
🔹 Cross-border payments
🔹 Regulatory and supervisory modernisation

Thank you to the Cayman Islands Monetary Authority for their warm hospitality. Learn more about our regional consultative groups and their role in fostering global coordination:
https://bit.ly/3ZWvYCX

ICYMI: Yesterday, our Secretary General, John Schindler, participated in the panel "Banking in a world with stablecoins and tokenized assets" at the Atlanta Fed's 30th Annual Financial Markets Conference, “Technology's Transformative Role in Finance and Central Banking.”

John discussed the FSB’s work on digital assets and stablecoins and highlighted opportunities and challenges from an international perspective.

We would like to thank the Federal Reserve Bank of Atlanta for the invitation to participate, as well as host David Wessel and fellow panellists Dan Awrey and Carolyn Weinberg for the engaging discussions.

🎥 Watch the recording here: https://bit.ly/43gGsxj

Coming up next Monday: Our Secretary General, John Schindler, will present the FSB's work on -assets and at the Atlanta Fed's 30th Financial Markets Conference. Watch the livestream 👇

Join the Federal Reserve Bank of Atlanta on May 18 at 11 a.m. (ET) for Policy Session 2, "Banking in a world with stablecoins and tokenized assets," at the 30th annual Financial Markets Conference.

Panelists will assess the advantages of bank and nonbank digital assets in terms of modernizing the payment system, increasing the competition for financial services, and rethinking the bundling of traditional banking credit transformation and money creation with payments.

Participants include Dan Awrey, Beth and Marc Goldberg Professor of Law, Cornell University; John Schindler, secretary general, Financial Stability Board; and Carolyn Weinberg, chief product and innovation officer, BNY. David Wessel, director of The Hutchins Center on Fiscal and Monetary Policy at Brookings will moderate.

Watch: https://atlfed.org/4cQgFSd.

For event details, see https://atlfed.org/3O7g5pW.