Bailey flags AI risks and cross-border stablecoin vulnerabilities
Andrew Bailey called for vigilance over global financial stability in an October 12, 2026 letter published by the Financial Stability Board (FSB). Ahead of the October 15 G20 meeting, he flagged sovereign bond volatility, private credit vulnerabilities and AI risks.
Cross-border risks demand closer monitoring
FSB Chair Andrew Bailey wrote to G20 Finance Ministers and Central Bank Governors ahead of their October 15 meeting.
His letter identifies heightened sovereign bond market volatility, private credit vulnerabilities and artificial intelligence (AI) risks.
An accompanying note sets out work on global stablecoin arrangements and data for financial stability monitoring.
It identifies further work to assess and monitor vulnerabilities, strengthen cross-border monitoring and support implementation of the 2023 recommendations through cooperation and information sharing.
The FSB also delivers finalised practices for responsible AI adoption, incorporating consultation feedback.
Safe adoption remains on its 2027 agenda as the technology develops rapidly.
Implementation gaps reach the G20
Reports requested by the US G20 Presidency include a peer review identifying gaps in temporary public backstop funding for banks in resolution.
A consultation proposes principles for more effective, efficient, risk-focused and forward-looking regulation and supervision.
The Implementation Monitoring Review follows the October 2025 Interim Review and assesses whether policy design supports implementation.
South Africa's 2025 G20 Presidency commissioned the work; former FSB Chair and Federal Reserve Board Vice Chair for Supervision Randal K. Quarles leads its working group.
Coordination meets the implementation test
The agenda puts implementation alongside emerging technology risks.
The FSB brings together authorities from 24 countries and jurisdictions and reaches approximately 70 others through six regional groups.
That reach provides a forum for cooperation, while the backstop review documents gaps in delivery.