Banks are stronger than they were before the financial crisis but regulators are continuing to monitor possible emerging risks, the he Financial Stability Board (FSB) Regional Consultative Group (RCG) for the Americas said Friday following a meeting in the Cayman Islands.
The region’s financial system is “substantially more resilient” since the crisis due to a series of regulatory reforms, including measures to boost capital and liquidity at large banks, the RCG says in a news release.
Regulators are alert to potential vulnerabilities, including the growth of leveraged loans, high debt levels, and the impact of financial sector innovation, the group says.
At its meeting, the group discussed the ongoing implementation of post-crisis reforms, which remains incomplete, and policy issues arising from the growth of crypto-asset markets, “such as consumer and investor protection, market integrity, tax evasion and money laundering/terrorist financing,” says the RCG.
The group also discussed the regulatory challenges posed by fintech, and the development of infrastructure finance, which the G20 is seeking to develop into a new asset class.