5 September 2023
The Financial Stability Board warns of upcoming challenges and shocks in the global financial system due to rising interest rates, impacting economic recovery and sectors like real estate. The board’s chair, Klaas Knot, emphasizes monitoring real estate for stress and urges proper risk management by financial providers. He highlights the need for consistent implementation of global bank capital rules by 2023 and tighter regulation of non-bank financial institutions. Policymakers are considering further refinements to address vulnerabilities exposed this year.