•  Since the Paris Agreement was signed five years ago, the climate emergency has considerably worsened. The close international cooperation that has been taking place over the last few months is the hoped-for premise that this year will be a turning point in the fight against climate change.
The FSB, working with the BCBS and the International Organization of Securities Commissions (IOSCO), has focused on five specific areas: (i) mitigating the spill-over effect between the regular banking system and the shadow banking system; (ii) reducing the susceptibility of money market funds to “runs”; (iii) assessing and mitigating systemic risks posed by other shadow banking entities; (iv) assessing and aligning the incentives associated with securitization; and (v) dampening risks and pro-cyclical incentives associated with secured financing contracts such as repos, and securities lending that may exacerbate funding strains in times of “runs”.