The G20 Finance Ministers and Central Bank Governors have published a communiqué following their meeting in Moscow on February 15 and 16.  The communiqué sets out the G20’s policy agenda for reforming financial regulation, which includes:

• Welcoming the Basel Committee’s increased focus on the comparability of risk-weighted assets.
• Reiterating the G20’s commitment to ensuring that all global systemically important financial institutions are capable of resolution, and that operational resolution plans for all globally systemically important banks should be developed by the end of June 2013.
• Stating that the FSB will continue to coordinate the monitoring of implementation of OTC derivative reforms, and with the aid of the Legal Entity Identifier global system which will be launched in March 2013.

Prior to the G20 summit, the FSB published a progress report on financial regulatory reforms, which emphasised that, with risk appetite beginning to return to the financial markets, the FSB’s priorities are completing the G20’s agreed reforms to the OTC derivatives markets, strengthening the oversight and regulation of the shadow banking sector and developing credible policies for ending the concept of “too-big-to-fail.”  The FSB’s report also provided an update on the implementation of the Basel III reforms, the reforms to reduce reliance on Credit Rating Agencies and the resolution regimes.