implementation of its global regulatory framework for crypto-asset activities. Additionally, the FSB is monitoring developments in artificial intelligence and their implications for the financial sector and financial stability. While the risks are not immediate, ongoing vigilance is essential due to this technology’s potential to transform the financial sector. CLIMATE CHANGE AND ENVIRONMENTAL SUSTAINABILITY The FSB has been proactive in addressing climate-related risks in finance, establishing the Task Force on Climate-Related Financial Disclosures in 2015. The TCFD laid the foundations for the 2023 disclosure standards set by the International Sustainability Standards Board, which will strengthen the comparability, consistency and usefulness of climate-related financial disclosures globally. The FSB is monitoring progress on implementation of market disclosures, in coordination with the ISSB, the International Organization of Securities Commissions and others. This progress, which will be reported to the G20, is central to the FSB Roadmap for Addressing Climate-Related Financial Risks. Earlier this year at the request of the G20, the FSB conducted a stocktake of regulators’ and supervisors’
KLAAS KNOT
Klaas Knot has been president of De Nederlandsche Bank since 2011 and has served as chair of the Financial Stability Board since 2021. He is a member of the governing council and general council of the European Central Bank, and a member of the European Systemic Risk Board, the International Monetary Fund’s board of governors and the board of directors of the Bank for International Settlements. He is also a professor of economics at the University of Groningen and honorary professor of monetary stability at the University of Amsterdam.
@KlaasKnot : fsb.org
initiatives to identify and assess nature-related financial risks. The report contributes to international discussions on whether – and how – nature degradation, such as biodiversity loss, is a relevant financial risk. THE CONTINUED NEED FOR COOPERATION A stable financial system is crucial for fostering inclusive and sustainable growth. It ensures that individuals and businesses have consistent access to credit and financial services through good times and bad, thereby enabling sustained investment in human and physical capital. Financial stability also equips the economy to withstand shocks and stresses, which can impede growth. A resilient financial system can absorb these shocks without causing widespread economic hardship or diverting resources from long-term priorities such as sustainable development. But financial stability cannot be taken for granted. Building resilience is an ongoing task, particularly amid the financial system changes discussed above, and others such as the growing importance of non-bank financial intermediation. In a deeply interconnected financial system, building resilience depends crucially on authorities working together across borders and sectors to identify and address vulnerabilities. The FSB was created by the G20 in the aftermath of the 2008 financial crisis to coordinate work to do just that. It brings together national authorities, international organisations and standard-setting bodies to work towards the common goal of international financial stability. This is a goal that is indispensable to the G20’s ambition of strong, sustainable, balanced and inclusive growth.
A stable financial system ... ensures that individuals and businesses have consistent access to credit and financial services through good times and bad, thereby enabling sustained investment in human and physical capital”
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globalgovernanceproject.org
2024 — G20 BRAZIL: THE RIO SUMMIT
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