After dominating the global economy and financial markets for the better part of a year, the effects of Covid-19 are now also reshaping the global regulatory agenda.
The Financial Stability Board (FSB) has published its plans for the year ahead, which “reflects a strategic shift in priorities” due to the pandemic.
In particular, the FSB said that ensuring international cooperation and coordination to address the fallout from the pandemic will headline its regulatory agenda for 2021.
“The FSB will continue to assess vulnerabilities in the global financial system; share information on policy responses; assess their effectiveness and coordinate the future timely unwinding of the temporary measures taken; and monitor the use of flexibility and consistency of policy responses with existing international financial standards,” it said in a report.
In April, the FSB plans to publish a paper on the factors that should be considered in unwinding support measures adopted due to Covid-19.
The FSB is also planning a draft report on the lessons to be learned from the pandemic in July, with a final report in October.
Apart from Covid-19, the group will also be working on a range of ongoing issues, including the growing shadow banking sector, financial benchmark reform, regulating global stablecoins and the shift to sustainable finance.
The FSB said that will continue to support the transition away from LIBOR, a move that’s slated for the end of 2021.
On shadow banking, the FSB said that it will focus on issues involving money market funds, open-ended funds, margin calls, bond market liquidity and cross-border U.S. dollar funding.
The regulator will also work on regulating climate risks at financial institutions, and ensuring high-quality and auditable disclosure standards are followed based on the recommendations of the Task Force on Climate-related Financial Disclosures.
A report on the availability of data on climate-related financial stability risks and data gaps is slated for July, along with measures to promote reporting standards.
Finally, a progress report on stablecoin regulation is scheduled for October, as is a report on cybersecurity.