ECONOMY: FINANCIAL STABILITY
Financial stability for a sustainable and inclusive global economy B razil’s 2024 G20 presidency has advanced various initiatives on sustainable development, inclusive growth and economic resilience under the theme of ‘Building a Just World and a Sustainable Planet’. Klaas Knot, chair, Financial Stability Board
Recent Financial Stability Board initiatives in digital innovation and environmental sustainability underscore the effectiveness of global cooperation, yet building resilience remains an ongoing task
Global financial stability is a crucial prerequisite for achieving these goals. As part of its mission to promote global financial stability, assigned by the G20, the Financial Stability Board has played a pivotal role in supporting key initiatives under the Brazilian G20 presidency. The FSB’s work on digital innovation and environmental sustainability shows the role it plays in facilitating global cooperation to address key developments affecting the financial system. CROSS-BORDER PAYMENTS AND DIGITAL INNOVATION Cross-border payments lie at the heart of international trade and economic activity. Historically, they have suffered from high costs, low speed, limited access and insufficient transparency. These issues are particularly burdensome for emerging market and developing economies. Since G20 leaders endorsed the Roadmap for Enhancing Cross-border Payments in 2020, much has been done to support progress towards its ambitious goal of cheaper, faster, more transparent and more accessible cross-border payments services. This year, the FSB has identified ways to promote greater alignment in data frameworks and explored how to level the playing field for banks and non-bank payment service providers. These efforts address fundamental challenges that the banking and payment systems face in achieving the G20’s goals. This work is part of a broader FSB agenda to harness the promise of technology while mitigating risks to financial stability. Ensuring that digital innovation in finance remains safe is crucial for both people and businesses. The FSB is addressing the potential risks on multiple fronts, from cyber threats to crypto-assets and artificial intelligence. The FSB is currently consulting on the design of a format for incident reporting exchange to promote greater convergence in firms’ reporting of cyber and operational incidents to financial authorities. This helps authorities better monitor operational disruptions and firms to respond to and recover from such disruptions quickly. The FSB has also delivered a status report on the
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G20 BRAZIL: THE RIO SUMMIT — 2024
globalgovernanceproject.org
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