ABSTRACT

Lessons Learnt from the COVID-19 Pandemic from a Financial Stability Perspective: Final Report   [open pdf - 0B]

From the Introduction: "The COVID-19 [coronavirus disease 2019] pandemic is the first major test of the global financial system after the financial crisis of 2008. While the core of the financial system - including major banks and financial market infrastructures (FMIs) - proved resilient, the macroeconomic shock led initially to severe liquidity stress in some other parts of the system. In particular, the stress in key funding markets highlighted financial vulnerabilities in parts of the NBFI [non-bank financial intermediation] sector and prompted unprecedented central bank intervention. While significantly different in nature from the 2008 crisis, this real-life test holds important lessons for financial policy, especially on the functioning of the G20 [Group of 20] financial regulatory reforms. Against this background, the Italian G20 Presidency asked the FSB [Financial Stability Board] to identify preliminary lessons for financial stability from the COVID-19 pandemic. In response to this request, the FSB, in collaboration with SSBs, prepared an interim report on lessons learnt. [...] This final report updates the assessment provided in the July interim report and outlines actions by the FSB and SSBs [standard-setting bodies] in response to lessons learnt. The update reflects feedback from external stakeholders and the FSB RCGs [Regional Consultative Groups], obtained through outreach events. It also takes into account recent studies in this area and progress made in relevant international initiatives."

Publisher:
Date:
2021-10-28
Series:
Copyright:
2021 Financial Stability Board
Retrieved From:
Financial Stability Board: https://www.fsb.org/
Media Type:
application/pdf
URL:
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