The Financial Stability Board (FSB) held its latest meeting in Tokyo over the past couple of days, reflecting on the progress of financial industry regulatory reform so far, and the work that still needs to be done.

The FSB notes that recent efforts by policymakers have improved investor confidence and access to financing markets, but they stressed that it is important that this momentum is not lost, and that trust in the health of some financial institutions is fully restored.

It also reviewed the financial stability risks posed by a slowdown of global growth, and said that regulators should “remain alert to signs of asset quality deterioration, and ensure robust provisioning and capital levels.”

In terms of specific ongoing reform initiatives, the FSB endorsed the final framework for dealing with domestic systemically important banks that was published Thursday by the Basel Committee on Banking Supervision; and, it endorsed for publication a consultation paper from the International Association of Insurance Supervisors that sets out proposed policy measures to apply to systemically important insurance companies.

The FSB also discussed an ongoing peer review, which is to be finalized in early 2013, to evaluate existing resolution regimes and any planned reforms to those regimes. A consultation paper with guidance on recovery and resolution planning will be issued in October, it notes.

Additionally, the FSB said it expects to publish for consultation a set of policy recommendations to strengthen regulation of shadow banking, following the G20 ministers and governors meeting in November.

It also reviewed the steps being taken to implement the G20 commitments to OTC derivatives reforms, expressing concern about unresolved issues in the cross-border application of regulation. They called on jurisdictions to put in place their legislation and regulation promptly, and to act by the end of this year to identify and address conflicts, inconsistencies and gaps in their respective national frameworks, including in the cross-border application of rules. They also emphasised the importance of authorities having access to aggregated data from trade repositories to enable adequate oversight.

Among other things, the FSB also heard reports on the work to review the setting of LIBOR, and other financial benchmarks, and agreed that it should act as a coordinator between these various efforts to ensure that the principles and good practices for benchmark-setting that emerge are widely adopted.