FSB Annual Report details 2025 work on global financial stability

The Financial Stability Board (FSB) has published its 2025 Annual Report, detailing efforts to promote global financial stability. The report summarizes key work on non-bank financial intermediation, crypto-assets, and cross-border payments.

Targeting vulnerabilities in non-bank finance and crypto

In 2025, the FSB intensified efforts to strengthen financial systems and enhance market stability.

Key initiatives included finalising work on financial stability risks from leverage in non-bank financial intermediation (NBFI) and establishing a Nonbank Data Task Force to improve vulnerability assessments.

The Board also reviewed its 2023 global regulatory framework for crypto-assets and stablecoins, urging authorities to address identified gaps that could pose risks.

Furthermore, the FSB finalised a format for exchanging operational incident reports and advanced guidance to support authorities' readiness to respond to financial institution failures.

These actions collectively address long-standing vulnerabilities such as rising sovereign debt, elevated asset valuations, and volatility in crypto markets, as highlighted by the FSB's ongoing surveillance.

Bailey on resilience and future adaptation

FSB Chair Andrew Bailey's foreword in the Annual Report highlights the critical importance of the Board's work amidst global shifts.

Bailey noted that despite an increasingly fragmented and unpredictable world, FSB members found common ground, demonstrating commitment to shared challenges.

He stated that "The shocks of recent years have not undermined financial stability", attributing this resilience to post-global financial crisis reforms.

However, Bailey also stressed the need for the FSB to adapt to remain fit for purpose.

The next phase of the 2025 strategic review will focus on identifying root causes for a slowdown in G20 reform implementation and promoting more effective strategies.

Navigating fragmentation, driving implementation

The FSB's report underscores the persistent challenges to financial stability in a fragmented world, even as past reforms have proven robust.

The focus on identifying root causes for G20 reform slowdown is crucial, signaling a shift towards more effective implementation strategies.

This proactive stance is vital for maintaining multilateral cooperation amidst evolving global risks.