Non-banks in focus as G20 leaders meet in Bali
FSB calls for action on liquidity mismatches and “hidden leverage”
The Financial Stability Board is urging G20 leaders to back reforms to non-bank financial intermediation (NBFI), a key global vulnerability, when they meet in Bali later this week.
Klaas Knot, FSB chair and governor of the Netherlands Bank, presented leaders with a proposal to repurpose existing tools to target NBFI vulnerabilities.
So far, the FSB has primarily focused on addressing liquidity mismatches, which played a leading role in the March 2020 market stresses, as well as margining
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