WASHINGTON — The Financial Stability Board said Wednesday in its annual report to the G-20 that progress is being made in implementing post-crisis financial reforms but that implementation of specific initiatives remains uneven across industrialized nations.
In its second annual report, the FSB noted that rules outlining capitalization of the largest banks, resolution protocols for systemically risky institutions and standards for the global derivatives market are largely established in many of the largest global markets. But progress in these and other important post-crisis reforms remains spotty between countries, and continued vigilance is necessary from world leaders to ensure that further progress is made.
"This significant progress must not lead to complacency," said Mark Carney, governor of the Bank of England and chair of the FSB. "Our priorities must be to implement our past agreements in a full, timely and consistent manner; to address new risks and vulnerabilities; and to continue to build an open global financial system that benefits all."
The report said reforms implemented to date have strengthened many of the most important international financial markets, making them more resilient to the kinds of shocks that preceded the financial crisis. But regulators across different jurisdictions remain uncoordinated in how they share information with one another. The report said technological gaps still remain in some jurisdictions that prevent the most up-to-date market surveillance from being used.
The report noted that the U.S. appears furthest along in implementation of many of the Basel III and other post-crisis reforms, having implemented its capital, liquidity, loss-absorption capacity and derivatives requirements. Turkey, South Africa and Argentina, meanwhile, had the furthest to go in implementing reforms.