The Financial Stability Board (FSB) reported on its Regional Consultative Group for Europe meeting in Bern, where members discussed European sovereign bond vulnerabilities and cyber risks amplified by advanced artificial intelligence models. Hosted by the Swiss National Bank, the meeting also examined crisis preparedness and public liquidity support, including funding in resolution and central bank liquidity facilities for solvent firms. Members reviewed their institutions’ work on financial stability vulnerabilities associated with extreme weather, including natural catastrophe insurance protection gaps. A panel session considered the European applicability of the FSB’s proposed principles for modernising regulatory and supervisory frameworks. Published for consultation in October, the eight principles emphasise proportionality, material risks and more efficient reporting while seeking to preserve or enhance financial system resilience. Members also reviewed the FSB’s 2026 work programme, considered priorities for 2027 and provided input for FSB Plenary discussions.
FSB Europe group reviews sovereign bond and cyber risks alongside proposed modernisation principles
The Financial Stability Board’s European regional group discussed sovereign bond vulnerabilities, cyber risks amplified by advanced artificial intelligence models and crisis liquidity support in Bern. Members also examined extreme weather risks and natural catastrophe insurance protection gaps. A panel considered how proposed regulatory and supervisory modernisation principles, published for consultation in October, apply in Europe.