FSB Chair’s Letter to G20 Finance Ministers and Central Bank Governors: April 2026
In a letter to G20 finance leaders, FSB Chair Andrew Bailey warned that the Middle‑East conflict has delivered a sharp shock to the global economy, driving up energy prices and government bond yields. He said the turmoil adds to existing vulnerabilities such as inflated asset valuations, concentrated leverage in non‑bank finance, and liquidity mismatches, raising the risk of simultaneous market shocks. Bailey identified sovereign bond markets, asset valuations and private credit as the three areas needing close monitoring. The FSB will soon publish a report on private‑credit risks and expand analysis of foreign‑exchange derivatives and other amplification channels.
FSB Chair Warns of Rising Financial Risks Stemming From Middle East Conflict
Financial Stability Board Chair Andrew Bailey warned G20 ministers that the Middle East conflict is amplifying existing financial vulnerabilities. He highlighted the risk of a "double or triple whammy" as stretched asset valuations, concentrated non‑bank leverage and liquidity mismatches converge...
