In a letter ahead of the Oct. 15 meeting of G20 finance ministers and central bank governors, Financial Stability Board Chair Andrew Bailey highlighted risks from sovereign bond market volatility, private credit vulnerabilities and artificial intelligence. The letter presents a package covering global stablecoins, responsible AI adoption, regulatory and supervisory modernization, implementation of FSB policies and last-resort public funding for banks in resolution. The stablecoin analysis finds that cross-border regulatory treatment remains uncertain in many jurisdictions, while oversight, crisis management and cooperation arrangements are still immature. It calls for stronger monitoring, information sharing and implementation of the FSB’s 2023 recommendations. Final AI sound practices provide an adaptable toolkit covering governance, lifecycle management, cyber risk and third-party services. The package also includes proposed principles for more effective, efficient and forward-looking regulation and supervision, and a review of how the FSB can make policy design more consistent, consult more widely and better support implementation. The submission reinforces earlier findings that gaps in public sector backstop funding weaken authorities’ ability to resolve systemic banks in an orderly manner. The FSB plans further work in 2027 on AI risks and its methods for promoting and monitoring policy implementation, while the regulatory and supervisory modernization report will be finalized that year.

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