FSB discusses regional vulnerabilities, stablecoins and other challenges
The Financial Stability Board (FSB) Regional Consultative Group (RCG) for Europe met recently to discuss substantial issues on global and regional financial vulnerabilities.
Vulnerabilities x-rayed include incessant search for better yield and continued pressures on the profitability of European banks.
During the meeting, the RCG members discussed interest rate benchmark reform. Emphasis on Financial institution preparedness for the possible end of London Inter-Bank Offered Rate and changes to other benchmarks were considered.
As part of the meeting focus areas, the CRG members also reviewed lessons from the simulation on joint financial crisis management conducted by Nordic and Baltic authorities in January 2019.
The group awaits public consultation on the FSB’s report on stablecoins regulatory issues, likely to be published in April 2020.