FSB Europe Group discusses regional vulnerabilities, crypto-assets and climate change
25 May 2022
It discussed regulatory and supervisory issues related to crypto-assets, and the associated challenges for policymakers. Members were briefed on the FSB’s workstream to examine supervisory and regulatory issues raised by “unbacked” crypto-assets complementing work on issues raised by stablecoins.
The Financial Stability Board (FSB)
Regional Consultative Group for Europe today in Stockholm held their
first in-person gathering since the onset of the COVID-19 pandemic.
Members discussed the outlook for global and regional financial
stability considering recent developments, including rising and volatile
commodity prices triggered by Russia’s invasion of Ukraine, higher
inflation, vulnerabilities in the non-bank financial sector and other
areas that warrant particular attention over the coming months. Members
received an update on the FSB’s 2022 work programme, and discussed items
of particular relevance to the European region.
The group discussed regulatory and supervisory issues related to
crypto-assets, and the associated challenges for policymakers. Members
were briefed on the FSB’s recently established workstream to examine
supervisory and regulatory issues raised by “unbacked” crypto-assets
which complements continuing FSB work on issues raised by stablecoins.
The group provided feedback on the areas that could benefit most from
international cooperation.
Finally, the group discussed work on a number of fronts to address
financial risks related to climate change, which the FSB is coordinating
through its Roadmap published in July 2021. This included an overview
of the International Sustainability Standard Board’s (ISSB) work on
developing global baseline sustainability disclosure standards,
beginning with climate. Members considered ways they could further
support the ISSB in finalising its exposure draft. Members also provided
feedback on the recommendations set out in the FSB’s consultative
report on regulatory and supervisory approaches to climate-related
financial risks that was published last month. They also exchanged views
on the financial stability implications of wider sustainability issues,
including nature and biodiversity.
The meeting was preceded by an Informal Seminar on Climate Change and
Energy Market Dynamics to discuss the implications for financial
stability of climate transition risks and recent energy market
challenges and the role the financial sector can play in supporting the
climate transition.
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