a serious business man thinking about serious problems
Andriy Bezuglov/123RF

The rise of fintech, the death of LIBOR and the impact of post-crisis reform efforts top the Financial Stability Board’s (FSB) agenda in the year ahead.

On Tuesday, the FSB published its work programme for 2020, which sets out its policy priorities. These priorities “reflect the evolving nature of the global financial system and associated risks to financial stability,” the FSB said.

Fintech innovation features prominently on the FSB’s agenda for 2020.

“The FSB will continue to monitor financial innovation developments and assess their potential implications for financial stability,” the FSB said. In particular, the FSB will examine the use of innovative technology by sector regulators (known as regtech and suptech).

It also plans to launch a public consultation on the regulatory issues that may arise from the development of so-called global “stablecoins.” That paper is slated for release next April.

Another key focus for 2020 is the planned transition away from the LIBOR benchmark by the end of 2021.

“To improve understanding and increase awareness of the importance of ensuring timely transition, the FSB will take stock of the implementation of benchmark reforms and report on remaining challenges to benchmark transition,” the FSB said.

Other priorities include enhancing global cross-border payments and continuing to evaluate the effects of the post-crisis reforms. In 2020, this will include an evaluation of the effects of “too big to fail” reforms for banks, and a review of the effects of money market fund reforms.