The Financial Stability Board has published Chair Andrew Bailey’s letter to G20 finance ministers and central bank governors warning of heightened sovereign bond market volatility, vulnerabilities in private credit and risks from artificial intelligence. Accompanying analysis finds that oversight, crisis management and cooperation for global stablecoin arrangements remain immature or undefined across many jurisdictions, creating risks where issuers, reserves and token holders span multiple regulatory and insolvency regimes. Stablecoins had a total market value of about USD 300 billion as of mid-2026, with 99% by value pegged to the U.S. dollar. The FSB calls for stronger monitoring of cross-border stablecoin holdings, redemptions, reserves and secondary markets, alongside better information sharing and implementation of its 2023 recommendations. Its broader G20 package also identifies gaps in public backstop funding for banks in resolution, proposes principles for more risk-focused and forward-looking regulation and supervision, and examines how its policy design can better support implementation. Final AI sound practices, following the June consultation, provide a 12-part toolkit covering institution-wide governance, lifecycle risk management, human oversight, cyber risk and third-party dependencies.
Financial Stability Board warns G20 of market and AI risks, identifies cross-border stablecoin oversight gaps
The Financial Stability Board has warned the G20 about sovereign bond volatility, private credit vulnerabilities and AI-related risks. It also identified immature cross-border oversight and crisis arrangements for global stablecoins, calling for stronger monitoring, cooperation and implementation of its 2023 recommendations. Other deliverables address AI governance, regulatory modernisation, resolution funding and policy implementation.