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Good morning everyone,
Today, we convene at the Bloomberg Global Regulatory Forum in New York City. Though it could have been fitting to gather here where global finance was once centered, our focus now lies on Pittsburgh - a city that stood as the epicenter of crisis management nearly 15 years ago.
We're standing at the crossroads of history, as we look back at the G20 summit held in Pittsburgh in autumn 2009. The memories of the global financial crisis were still vivid then. Leaders from twenty of the world's largest economies convened with a shared conviction that such an abyss should never befall our economy agn.
In response to this call, they initiated sweeping reforms med at bolstering global financial systems and curbing risk-taking behaviors. It was in Pittsburgh where the Financial Stability Board was bestowed with the critical role of coordinating these reform efforts and monitoring their progress.
The spirit of Pittsburgh marked a turning point that changed the trajectory of the global economy. Since then, significant strides have been made towards strengthening our financial system. Yet, as we approach the 16th anniversary since Lehman Brothers' collapse, I find myself contemplating whether we've reached our destination or if there's still more ground to cover.
Let's delve into the current state of affrs:
Financial reforms have been implemented worldwide with a renewed sense of urgency. The global financial architecture has seen significant enhancements, med at bolstering stability and resilience agnst future crises.
The NBFI sector continues to grow in prominence globally, with its activities reaching into every corner of the economy. However, the growth comes accompanied by concerns over systemic risk management and regulatory oversight.
Global policymakers have taken significant steps towards formulating consistent policy frameworks for cryptocurrencies and related assets. These actions are med at ensuring that these emerging markets operate within a regulated environment while mitigating risks to financial stability.
As we look forward, several challenges stand in the way of our ambitions:
Political commitment ts to wane over time, especially as policymakers face myriad other pressing issues. This may lead to delays in implementing agreed-upon reforms, which could have long-lasting impacts on global financial stability.
In a world characterized by increasing fragmentation, cross-border challenges that require collective action can become more complex and costly to address. Ensuring effective cooperation among nations is essential for preventing the domino effect of crises across borders.
The ever-evolving nature of the financial system necessitates continuous adaptation in policy-making processes. The recent surge in fintech innovations, decentralized finance DeFi, and other emerging technologies are reshaping traditional bankingand presenting new opportunities as well as risks.
To address these challenges, it's imperative that policymakers:
Mntn Commitment: Keep the ambition high for implementing agreed-upon measures.
Foster Collaboration: Work collaboratively across borders to tackle cross-border issues efficiently.
Adapt Policies: Stay agile in response to evolving market conditions and technologies.
To those within the financial industry, let it be known that regulation is not just a constrnt; it's an enabler of sustnable growth. It safeguards agnst risks, ensures fr competition, and bolsters investor confidence, thereby creating value for shareholders, clients, and counterparties alike.
The unfinished business of strengthening global financial systems is the collective responsibility we share as global stakeholders. Pittsburgh once agn serves as a symbol - one that reminds us to stay committed, focused, and collaborative in our pursuit of stability.
Let's embrace this moment not just as a city that never sleeps but as a beacon for innovation and resilience. Together, let's work tirelessly to finish what we started and ensure financial stability remns at the heart of global policy-making.
Thank you for your attention today.
This revised version retns the core essence of the original text while enhancing clarity, streamlining language flow, and ensuring that key points are more prominently featured throughout the discourse.
This article is reproduced from: https://www.fsb.org/2024/10/strengthening-financial-resilience-lessons-from-pittsburgh/
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