The Financial Stability Board (FSB), acting as the G20’s risk watchdog, has issued a stark warning of a potential global financial market crash. Rising asset prices, misaligned valuations, and mounting sovereign debt are key concerns flagged by the board.
FSB Chair Andrew Bailey, in a letter to G20 finance ministers, stressed that existing reforms must now be implemented consistently across jurisdictions to stave off systemic crises.
This alert comes amid external pressures: U.S. threats of renewed tariffs on China, geopolitical instability, and weak fundamentals underlying some equity rallies. Though markets have shown resilience, the FSB warns that cracks beneath the surface could lead to sudden reversals.
The FSB’s shift from policy development to enforcement signals urgency: regulators must now focus on ensuring that agreed reforms (capital buffers, stress tests, resolution frameworks) are not just theoretical but rigorously applied.
Emerging economies and heavily indebted nations are particularly vulnerable. For regional media in South Asia, this serves as a cautionary tale: global financial storms could soon impact local markets, currency stability, and development financing.
