This was largely ignored until the COVID crisis made them obvious to all, when investment funds played a crucial role in market disruption and, specifically, in capital flow reversals.3 NBFI reform is now very much on the FSB’s agenda. The Italian presidency of the G20 has made it one of its key priorities in the Finance track.
While some issues are still controversial, progress has been palpable in some key areas, and I am confident that a more comprehensive approach is gradually developing. This was my first main point. My second point concerns the policy responses during the pandemic, which proved effective in dealing with large and volatile capital flows.