Crypto-asset regulations, recent developments in the artificial intelligence (AI) space, and the growing risk of climate change emerged as key priorities as the Financial Stability Board (FSB) Regional Consultative Group for Asia (RCG Asia) gathered in Colombo, Sri Lanka on Monday 29 April.
As members met to discuss these key topics, the FSB Asia group provided an update on its work programme, discussing how members could contribute to its emerging market and developing economies-focused work. Recent financial market developments and vulnerabilities that warranted closer monitoring were also discussed.
The FSB formed six regional consultative groups, which look to bring financial authorities from FSB member and non-member countries together to exchange views on vulnerabilities affecting financial systems and on initiatives to promote financial stability. Typically, these regional consultative groups each meet twice a year and cover: The Americas, Asia, the Commonwealth of Independent States, Europe, the Middle East and North Africa, as well as sub-Saharan Africa.
The group discussed ways to promote the implementation of the FSB regulatory framework for crypto-asset activities across the region and recent developments in artificial intelligence, its growing use in the financial sector, and implications for financial stability.
Members also discussed progress on enhancing cross-border payments and the key challenges in making them faster, cheaper, and more transparent and inclusive. The FSB’s work under the G20 Roadmap has moved to a new phase focused on implementation and includes efforts to strengthen engagement with the private sector.
The group discussed initiatives within their respective jurisdictions addressing existing frictions in cross-border payments, including technological innovations.
Finally, the topic of climate change emerged as an important area to review, with the FSB revealing plans to focus on deepening its analysis of climate-related financial risks to financial stability and examining the relevance of transition plans for financial stability. Members discussed their work in supervising climate-related financial risks and how transition planning was feeding into this work.
