The Financial Stability Board has approved its 2026 work programme following its Plenary meeting in Riyadh, setting out deliverables for the United States G20 Presidency and launching additional initiatives on modernising regulation and supervision, stablecoins and nonbank financial intermediation (NBFI). The Plenary also called for jurisdictional and regional action plans to improve cross-border payments and reviewed evolving vulnerabilities in the global financial system, including challenges facing emerging market and developing economies. Members highlighted risks from historically stretched asset valuations, particularly in AI-related securities, potential tightening of borrowing conditions for riskier firms, and rising government debt. The Plenary also discussed the growing role of nonbanks in government debt markets and the potential for leveraged strategies to amplify volatility, alongside the rapid growth and limited transparency of private credit and its increasing links to banks. On crypto-assets, the programme includes further work on the financial stability implications of stablecoins, including laying groundwork to address regulatory fragmentation and strengthen cross-border cooperation, while continuing to monitor operational disruption risks at key financial institutions and technology providers. For NBFI, the work plan includes follow-up on vulnerabilities in government bond-backed repo markets, implementation of FSB recommendations on liquidity management for open-ended funds and NBFI leverage, enhanced disclosure to prime brokers, and closing data gaps on leveraged trading strategies via the Nonbank Data Task Force, alongside options for further work on private credit data gaps and interlinkages. The Plenary also moved to phase two of the strategic review of implementation led by Randal K. Quarles, considered a proposal to review the FSB’s crisis preparedness activities, and signalled 2026 work on resolution implementation monitoring, funding in resolution and cross-border bail-in effectiveness; in insurance, it approved publication of the annual list of insurers subject to resolution planning standards and a consultation report on recovery and resolution planning requirements for insurers.

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