The Annual Report, published in a new format for the first time this year, includes a foreword by FSB Chair Andrew Bailey, who is also the Governor of the Bank of England. He said that in an increasingly fragmented and unpredictable world, where multilateralism is being tested, FSB members continued to find common ground and demonstrated commitment to addressing shared challenges, giving reason to be optimistic.

The FSB Chair notes that “the shocks of recent years have not undermined financial stability,” a testament to the reforms put in place since the global financial crisis.

Andrew Bailey also noted that the Financial Stability Board must continue to evolve to be fit for purpose in an ever-evolving world, a theme that will continue to guide the international body’s work. Also, the second phase of the Financial Stability Board strategic review of implementation will further address how to identify the causes of a slowdown in G20 reform implementation and how to encourage implementation more effectively.

As outlined in the body of the Annual Report, in 2025, the FSB, through its membership and in collaboration with international standard-setting bodies, continued to strengthen financial systems, enhance the resilience of global financial markets, and improve implementation of policy recommendations across industries and jurisdictions. Several longstanding vulnerabilities in the financial system during its ongoing surveillance, including rising sovereign debt levels and the rapid growth of Non-Banking Financial Institutions (NBFI).

In response, the Financial Stability Board completed work to address the financial stability risks related to leverage in NBFI and created the “Nonbank Data Task Force” to address data issues that prevent authorities from effectively assessing vulnerabilities in NBFI.

The FSB also reviewed the progress in implementing the 2023 global regulatory framework for crypto-assets and stablecoins, calling on authorities to address gaps and inconsistencies that could pose risks to financial stability. Regarding operational vulnerabilities, the FSB finalised an operational incident reporting exchange format.

The Financial Stability Board has emerged as the global standard setter for the resolution of financial institutions, and in 2025, it continued its work on this front to support authorities’ preparedness to respond to failures, including the production of policy guidance and enhancements to operational planning.

Image Credits: Bank of England

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