The Financial Stability Board’s (FSB) Regional Consultative Group for Asia (RCG Asia) convened today in Colombo to address pressing issues in the financial landscape.
Members engaged in discussions concerning recent developments and vulnerabilities in financial markets that require heightened monitoring. They also received updates on the FSB’s work program, exploring avenues to contribute to initiatives focused on emerging markets and developing economies. Notably, the group delved into strategies to promote the adoption of the FSB regulatory framework for crypto-asset activities across Asia.
Moreover, the meeting spotlighted advancements in artificial intelligence (AI) and its increasing integration into the financial sector, assessing its implications for financial stability. Members shared insights on supervisory approaches to manage AI-related risks and explored the intersection of AI and climate change mitigation efforts.
With a keen focus on climate resilience, the group reviewed progress made in addressing financial risks stemming from climate change. This year, the FSB aims to deepen its analysis of climate-related financial risks and assess the significance of transition plans in safeguarding financial stability. Discussions centered on supervisory practices related to climate risks and how transition planning aligns with these efforts.
Additionally, the meeting addressed the imperative of enhancing cross-border payments to ensure they are faster, more cost-effective, and inclusive. Under the G20 Roadmap, the FSB’s endeavors have transitioned to a phase emphasizing implementation, with a strong emphasis on private sector engagement. Members shared initiatives aimed at addressing existing challenges in cross-border payments, including leveraging technological innovations. They also explored opportunities for collaborative efforts between the public and private sectors to drive progress in the region.
Background: Co-chaired by Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, and P Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, the FSB RCG Asia comprises financial authorities from 17 countries and jurisdictions across the region. The FSB oversees six Regional Consultative Groups, facilitating collaboration among financial authorities to address vulnerabilities and promote financial stability. With a mandate to coordinate financial policies globally, the FSB plays a pivotal role in enhancing regulatory frameworks and supervisory practices to safeguard financial systems worldwide.