Financial Stability Board priorities for 2021: payments, Money Market Funds and COVID-19

ABBL Published 14.04.2021

The Financial Stability Board (FSB) was established after the 2008 financial crisis to promote international financial stability by coordinating national financial authorities and international standard-setting bodies. It advises and reports to the G20, ensuring a level playing field in the implementation of policies across sectors and jurisdictions.

On 30 March 2021, the Chair of the FSB, Randal K. Quarles, presented the work programme for 2021 at the Petersen Institute for International Economics. Quarles addressed financial stability’s challenges in the age of innovation and change, identifying future challenges as non-bank financial institution (NBFI) and cross-border payments.

Non-bank financial institution (NBFI)

Regarding NBFI, the FSB plans to publish a report in July aimed at setting out consequential policy proposals to improve money market funds’ resilience. Moreover, the FSB will work on open ended-funds, liquidity, margin and bond market structure. In particular, the FSB will ensure that central clearing counterparties (CCPs) are sufficiently margined as critical nodes in the financial system.

Cross-border payments

To enhance cross-border payments, the FSB is going to publish a consultative paper in May. Then, based on the feedback received, it will deliver a final set of targets to the G20 in October. The FSB will also commit to engage with financial institutions, service providers, industry groups and practitioners.


Regarding COVID-19, the FSB will continue to monitor vulnerabilities as the rise in non-financial sector’s debt and measures of bond and equity market valuations. Furthermore, it will share lessons learned on financial stability with the G20.

Banking reforms

The FSB will keep on working on banking reforms, releasing the final report on its evaluation of the effects of banking reforms after the 2008 financial crisis.

London Interbank Offered Rate (LIBOR)

Finally, in order to finalise the transition from the London Interbank Offered Rate (LIBOR), the FSB will report to the G20 on ongoing progress and issues related to the LIBOR transition, including supervisory issues related to the benchmark transition.

By Sofia Badari


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