Financial markets are already pricing in interest rate cuts for next year. If they have to adjust this expectation, which is not unlikely, this could lead to new corrections. Of course, regulators and the financial sector are also grappling with structural shifts in the global financial system.
Speaking as chair of the FSB, the priority areas we are looking at are the shift of financing activities from banks to the non-bank sector, the financial consequences of climate change, digitalisation and the rapid developments taking place in the crypto ecosystem. Events are opportunities to learn – to improve is to change.