Financial Stability and Regulation: Building Resilient Financial Systems

Strong, stable financial systems are essential for economic growth and prosperity. The G20 Finance Track works to strengthen financial regulation, enhance stability, and prevent crises.

The Importance of Financial Stability

Financial stability:

• Supports economic growth
• Protects savings
• Enables investment
• Prevents crises
• Builds confidence

Financial Stability Challenges

• Systemic risks
• Shadow banking
• Cyber threats
• Climate risks
• Cross-border spillovers

G20 Financial Priorities

1. Regulation

• Banking regulation
• Capital requirements
• Liquidity standards
• Risk management

2. Supervision

• Enhanced supervision
• Macroprudential policies
• Stress testing
• Early warning systems

3. Resolution

• Crisis management
• Resolution frameworks
• Bail-in mechanisms
• Cross-border cooperation

4. Innovation

• Fintech regulation
• Digital currencies
• Innovation frameworks
• Regulatory sandboxes

Key Initiatives

• Basel III framework
• Financial Stability Board
• International standards
• Peer reviews