At its meeting today in Basel, the Financial Stability Board (FSB) discussed vulnerabilitiescurrently affecting the global financial system and its work plan for 2012 to strengthen global financial regulation.
The sovereign debt crisis in the euro area continues to weigh on the global financial system. High risk aversion and weak economic growth are compounding the refinancing challenges facing sovereigns and financial institutions. Although market conditions have improved in recent weeks, downside risks remain substantial.
We welcome the significant policy measures taken to address the crisis in recent months. We look forward to European and national authorities fully and promptly implementing a comprehensive set of measures to support confidence and lower market tensions. All FSB members are committed to strong cooperation to support market functioning and to act asneeded to contain the risks of spillovers in the global financial system.
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