Building an Open, Integrated, and Resilient Global Financial System: The Road to Brisbane and Beyond

Abstract

This commentary assesses the progress made on the G20 regulatory reform agenda since the global financial crisis of 2007–08. The overarching goal of these reforms is to reduce the likelihood and impact of future crises and help to achieve a more open, integrated, and resilient global financial system and global economy. The commentary examines the important policy deliverables for the 2014 G20 Summit in Brisbane, Australia in the areas of strengthening bank capital and liquidity, ending the problem of “too-big-to-fail,” transforming shadow banking into resilient market-based finance, and building continuous over-the-counter derivatives markets. It also provides an overview of the plans to monitor implementation of these policies following the Brisbane Summit. Finally, it argues that balanced and targeted financial regulatory reforms will enhance competitiveness, competition, and consumer welfare.