The Financial Stability Board (FSB) convened its Plenary meeting on 18-19 November 2025 in Riyadh, Saudi Arabia, to address vulnerabilities in the global financial system and outline priorities for 2026. Members discussed risks facing emerging market and developing economies (EMDEs), reviewed progress on key initiatives, and approved the FSB’s work programme for the coming year.
The Plenary focused on ongoing challenges in the economic outlook. Members noted that asset valuations, particularly in AI-related securities, remain high and could lead to sharp corrections. They expressed concern about potential tightening of borrowing conditions for riskier companies amid global uncertainty. The group also highlighted rising government debt levels worldwide, which could undermine financial resilience due to factors such as slower growth and aging populations. Nonbank entities have become increasingly important in government debt markets but may contribute to volatility if highly leveraged positions unwind rapidly.
Private credit markets were also discussed. While these markets have improved access to credit, their rapid expansion, complexity, lack of transparency, and links to the banking sector require close monitoring.
On digital assets, the FSB called for continued oversight of growing connections between crypto-assets—including stablecoins—and the broader financial system. While stablecoins can make payments faster and more efficient, members said they introduce new vulnerabilities like run risk and regulatory challenges with multi-jurisdiction issuers.
Operational disruptions at major financial institutions or technology providers were identified as another potential source of systemic risk.
Looking ahead to 2026, the FSB’s approved work plan includes support for regulatory modernization efforts in several jurisdictions and alignment of approaches globally. Priorities include further analysis of crypto-assets and stablecoins. A thematic peer review delivered to the G20 in October found that rapid growth in stablecoins is attracting traditional finance interest but has led to regulatory fragmentation. Members stressed that countries should align regulations to ensure stability and address concerns related to money laundering and terrorism financing.
The Plenary decided to move forward with phase two of its strategic review on implementation monitoring led by former FSB Chair Randal K. Quarles.
Members also discussed cross-border payments progress under the G20 Roadmap. An October report warned that targets set for end-2027 may not be met; members urged regional action plans targeting specific challenges faced by EMDEs and emphasized private sector engagement.
Work on nonbank financial intermediation (NBFI) remains a focus. The group reviewed a report on vulnerabilities in government bond-backed repo markets and supported further measures for liquidity management by open-ended funds as well as greater disclosure by nonbanks to prime brokers regarding leverage.
Efforts will continue toward closing data gaps related to leveraged trading strategies in sovereign bond markets under the Nonbank Data Task Force.
Regarding crisis preparedness, members considered a proposal for a strategic review of crisis response activities following banking turmoil seen in 2023. They emphasized coordinating across authorities and improving resolution standards implementation—particularly addressing funding challenges during bank resolutions and execution of cross-border bail-ins—in 2026.
In insurance supervision, members welcomed use of holistic framework assessments from the International Association of Insurance Supervisors instead of annual identification lists for systemically important insurers. The annual list of insurers subject to resolution planning standards was approved for publication alongside a consultation report on recovery requirements.
Andrew Bailey, Chair of the FSB and Governor of the Bank of England, stated: “This Plenary marks a significant step for the FSB. Our members have agreed to focus the work of the FSB to respond to changes in the pattern of financial stability vulnerabilities, the adoption of innovation, and to ensure a stable financial environment to facilitate economic growth. Our 2026 agenda of work is demanding, but we remain committed to closely scrutinising vulnerabilities in the market and resolutely following up to ensure the implementation of our recommendations across the globe.”
The FSB brings together national authorities from 24 countries along with international organizations responsible for global financial stability coordination. Its Secretariat is based in Basel at the Bank for International Settlements.