Overview
- FSB Chair Andrew Bailey told G20 ministers that lofty valuations conflict with an uncertain economic and geopolitical outlook, raising the risk of a sharp market reset.
- The board will pivot from drafting new rules to monitoring and facilitating consistent, timely implementation of existing global reforms.
- Bailey flagged rising sovereign debt and uneven adoption of post‑crisis standards as key vulnerabilities keeping systemic risk elevated.
- An interim review led by former FSB Chair Randal Quarles will go to the G20 next week, finding that full implementation of reforms remains incomplete.
- Recent volatility after President Donald Trump's tariff threat against China underscored fragility, as the FSB moves to strengthen surveillance of risks tied to private finance, stablecoins, AI, cyber and climate.