A G20-requested review called on the Financial Stability Board to concentrate its policy work on vulnerabilities that are genuinely cross-border, cross-sectoral and systemic. The review said national legal frameworks, market structures and political capacity were the main reasons why implementation of international reforms had been uneven. It also found that the FSB's own policy-development process had sometimes made implementation harder or more contentious than necessary.
The Independent Monitoring Review group was chaired by former FSB chair and former Federal Reserve vice-chair for supervision Randal Quarles. Its report followed a 2025 assessment that found a concerning pattern of delayed or stalled implementation of reforms developed after the global financial crisis. The latest review examined whether the way the FSB develops, drafts and presents recommendations creates obstacles for national authorities.
PRIORITISING SYSTEMIC VULNERABILITIES
The review recommended more disciplined selection of new policy projects and shorter indicative timelines from commissioning through possible implementation monitoring. For emerging vulnerabilities, it said the FSB should normally begin with high-level principles rather than detailed prescriptions. More specific requirements could follow when risks become better understood or when an acute threat demands them.
The report also called for earlier engagement with the public and emerging-market authorities, clearer consultation on implementation, and more consistent policy documents. It said excessive detail can make global standards difficult to apply, while language that is too broad can produce divergent national outcomes. A written development framework and a consolidated compendium of FSB recommendations are intended to improve clarity and accountability.
CONSULTATION TESTS MODERNISATION PRINCIPLES
In a parallel consultation, the FSB proposed eight principles covering continuous review, proportionality, material-risk focus, forward-looking supervision, coherent domestic frameworks, impact analysis and efficient reporting. The proposals say authorities may tailor requirements to an institution's size, complexity, business model and systemic importance. They also state that modernisation should preserve or improve resilience and remain consistent with internationally agreed standards.
The consultation is non-binding and remains open until 8 January 2027, after which the FSB plans to finalise the principles. A further monitoring review is scheduled for the first half of 2027 and will examine how the board tracks national implementation. Those milestones will show whether the recommendations produce a narrower agenda and more workable standards rather than an immediate change in bank rules.