Eight modernisation principles aim to preserve financial resilience
Eight proposed principles would guide regulatory and supervisory modernisation without reducing resilience. The Financial Stability Board (FSB) opened consultation on October 14, 2026, at the US G20 Presidency's request; comments close January 8, 2027.
Efficiency without weaker safeguards
The FSB proposes ongoing reviews; proportionality and tailoring; focus on material risks; efficient, effective supervision; forward-looking regulation; coherent domestic frameworks; transparent policymaking with impact analysis; and efficient reporting and disclosure.
Authorities would consider institutions' size, complexity, risk profile, business model and systemic importance when tailoring requirements.
Technology would complement, not replace, supervisory judgment under human oversight.
Impact analysis would consider cumulative policy effects, while authorities would coordinate data collection to reduce duplication.
The principles preserve international standards and existing resilience, respect national legal frameworks and prescribe neither greater nor lesser stringency.
126 efforts inform the proposals
A stocktake covered 126 modernisation efforts reported by 24 jurisdictions and three standard-setting bodies.
A three-session symposium in Basel on June 9, 2026, explored impact analysis and proportionality.
Illustrative cases include the Bank of Spain's 34 percent reduction in domestic reporting, with a further 16 percent targeted.
Members reported risks from oversimplified supervision, undercalibrated prudential requirements and fragmentation.
The case studies are not prescriptive, and the FSB's activities create no binding legal obligations.
Simpler does not mean safer
The report makes resilience the constraint on simplification, not a competing objective.
Symposium participants noted that proportional frameworks can require more complexity, while simpler ones can offer less tailoring.
They also warned against false precision in cost-benefit analysis.