Cebu Top financial officials met recently at a meeting of the Financial Stability Board’s (FSB) Regional Consultative Group for Asia (RCG Asia) to talk about the need for a worldwide regulatory framework for crypto-assets and the consequences of non-bank financial intermediation (NBFI). The Cebu, Philippines, meeting’s overarching goal was to address risks associated with these industries’ fast development.
Recent unrest in the banking sector has prompted the Financial Stability Board to hold a meeting of its RCG in Asia. Members discussed these events in depth and attempted to assess their likely influence on Asia. Recent occurrences have also brought attention to the urgent need to address vulnerabilities in the NBFI sector, leading to a focused investigation of methods to increase its resilience.
G20’s involvement
In light of the G20’s mandate to the FSB to craft a comprehensive crypto-assets regulatory framework, RCG Asia members recently convened to share their knowledge and perspectives on the regulation of crypto-assets, intermediaries, and markets. All attendees agreed that the FSB’s suggestions for regulating and supervising the crypto-asset industry are a good starting point for doing just that. The need of building a solid framework for this new industry was expressly recognised, as was the FSB’s emphasis on global stablecoin arrangements.
These vital topics were discussed, and the FSB RCG Asia also heard updates on the organization’s work priorities for 2023, which will help it to better achieve the goals established by India’s G20 Presidency.
Governor Felipe M. Medalla of the Bangko Sentral ng Pilipinas and Deputy Governor M. Rajeshwar Rao of the Reserve Bank of India, co-chairs of the FSB RCG Asia, have voiced their pleasure with the group’s constructive discussions and the dedication of its members. Australia, Brunei Darussalam, Cambodia, China, Hong Kong Special Administrative Region, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka, Thailand, and Vietnam are all represented by their respective financial authorities in the RCG Asia.
The Financial Stability Board (FSB) is committed to ensuring financial stability and fostering cooperation as financial markets continue to change and confront new challenges. The FSB RCG Asia hopes to contribute to the continuing efforts to address the risks originating from non-bank financial intermediation and crypto-assets with the insights gathered from this conference.
