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G20 Financial Watchdog Backs Modernising Regulations

Published by Global Banking & Finance Review®

Posted on November 19, 2025

2 min read

Last updated: January 20, 2026

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G20 financial watchdog backs modernising regulations - Finance news and analysis from Global Banking & Finance Review

Tags:regulatory framework financial stability

Quick Summary

The FSB outlines 2026 priorities, focusing on modernizing regulations, stablecoin alignment, and monitoring private credit markets.

G20 Financial Watchdog Advocates for Modernized Regulations

By Marc Jones

LONDON (Reuters) -Modernising regulations, aligning rules around stablecoins and keeping tabs on ballooning debt and private credit markets are next year's top priorities, global financial regulators said on Wednesday.

The Financial Stability Board, which coordinates financial rules for the Group of 20 economies (G20), set its work programme for 2026, a year when Donald Trump's U.S. government, which is keen on easing regulations, will take over as G20 chair.

FSB head, Bank of England governor Andrew Bailey, said the watchdog remained "committed to closely scrutinising vulnerabilities in the (global financial) market" and ensuring the implementation of its recommendations.

A two-day plenary of FSB members in Saudi Arabia ahead of the weekend's meeting of G20 leaders in South Africa looked at how a number of top countries have now started, or are planning to, revamp regulations after the years of toughening rules.

"The Plenary (meeting of FSB members) agreed that the FSB should examine these initiatives to determine where it can support alignment of approaches globally," the FSB said.

Another priority for next year will be the boom in private credit markets.

FSB members discussed "their rapid growth, complexity, relative lack of transparency" and that growing interlinkages to the rest of the financial system "require careful monitoring".

Its options for next year include further assessment of the possible vulnerabilities posed by the boom and improving data that regulators have access to.

The plenary also called for continued close monitoring of crypto-assets and stablecoins and their impact on the broader financial system.

Stablecoins "raise a number of vulnerabilities, including (bank) run risk and regulatory challenges associated with multi-jurisdiction issuers," the FSB's readout of its meeting said.

It discussed historically stretched asset price valuations, particularly AI-related stocks, and how highly leveraged "nonbank entities" have become increasingly important in government debt markets.

(Reporting by Marc JonesEditing by Alexandra Hudson)

Key Takeaways

•FSB sets 2026 priorities for modernizing financial regulations.
•Focus on stablecoins and private credit market growth.
•G20 to be chaired by Donald Trump's U.S. government in 2026.
•FSB emphasizes monitoring vulnerabilities in global markets.
•Stablecoins pose regulatory challenges across jurisdictions.

Frequently Asked Questions about G20 financial watchdog backs modernising regulations

1What is a stablecoin?

A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging it to a reserve of assets, such as fiat currency or commodities, to reduce volatility.

2What is financial stability?

Financial stability refers to a condition where the financial system operates effectively, with institutions able to withstand shocks, ensuring the smooth functioning of financial markets.

3What are private credit markets?

Private credit markets involve non-bank entities providing loans or credit to businesses, often with less regulation than traditional banking, which has seen rapid growth in recent years.

G20 Financial Watchdog Advocates for Modernized Regulations

By Marc Jones

"The Plenary (meeting of FSB members) agreed that the FSB should examine these initiatives to determine where it can support alignment of approaches globally," the FSB said.

Another priority for next year will be the boom in private credit markets.

FSB members discussed "their rapid growth, complexity, relative lack of transparency" and that growing interlinkages to the rest of the financial system "require careful monitoring".

Its options for next year include further assessment of the possible vulnerabilities posed by the boom and improving data that regulators have access to.

The plenary also called for continued close monitoring of crypto-assets and stablecoins and their impact on the broader financial system.

Stablecoins "raise a number of vulnerabilities, including (bank) run risk and regulatory challenges associated with multi-jurisdiction issuers," the FSB's readout of its meeting said.

It discussed historically stretched asset price valuations, particularly AI-related stocks, and how highly leveraged "nonbank entities" have become increasingly important in government debt markets.

(Reporting by Marc JonesEditing by Alexandra Hudson)

Key Takeaways

•FSB sets 2026 priorities for modernizing financial regulations.

•Focus on stablecoins and private credit market growth.

•G20 to be chaired by Donald Trump's U.S. government in 2026.

•FSB emphasizes monitoring vulnerabilities in global markets.

•Stablecoins pose regulatory challenges across jurisdictions.

Frequently Asked Questions

1What is a stablecoin?

A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging it to a reserve of assets, such as fiat currency or commodities, to reduce volatility.

2What is financial stability?

Financial stability refers to a condition where the financial system operates effectively, with institutions able to withstand shocks, ensuring the smooth functioning of financial markets.

3What are private credit markets?

Private credit markets involve non-bank entities providing loans or credit to businesses, often with less regulation than traditional banking, which has seen rapid growth in recent years.