Financial Stability Board “The turmoil in financial markets is due to the weak system” November 17, 18:48
The Financial Stability Board, formed by financial authorities and central banks in major countries, compiled a report on financial market turmoil, including global stock depreciation and exchange rate fluctuations, in March due to the effects of the new Coronavirus.
He pointed out that it is necessary to consider regulations, saying that the influence of financial institutions other than banks, such as investment companies, is growing and the financial system remains weak.
The Financial Stability Board’s report released on March 17 analyzed the turmoil in financial markets in March, which made it difficult for the market to close due to the sharp increase in companies, mainly in the United States, to cancel investment funds in an order to secure dollar funds at hand.
Behind the turmoil, regulations on major banks have been strengthened to prepare for the crisis following the Lehman shock, while financial markets have increased the presence of non-banks, such as investment firms, and the structure of the financial system has changed.
On that basis, alever tensions eased due to the intervention of central banks in each country, he pointed out that “the structure that caused the turmoil still exists and the financial system remains weak in response to the next shock,” and stated that it was necessary to strengthen financial institutions other than banks, such as investment firms, to the crisis, and indicated that it would be necessary to consider including regulations in the future.
The Financial Stability Board has decided to submit a report to the G20 Summit in Saudi Arabia from November 21.