G20 risk watchdog warns of potential global market crash
The Financial Stability Board (FSB), the G20’s risk watchdog, has warned that soaring global share prices and other asset valuations have left financial markets vulnerable to a crash amid ongoing economic and geopolitical uncertainty.
FSB Chair Andrew Bailey told G20 ministers in an October 8 letter that maintaining multilateral cooperation is essential—not only to prevent crises but also to support sustainable economic growth. He noted that rising sovereign debt levels and gaps in implementing agreed global financial reforms increase systemic vulnerabilities, News.Az reports, citing Reuters.
“While most jurisdictions have seen a rebound in financial markets in recent months, valuations could now be at odds with the uncertain outlook, leaving markets susceptible to a disorderly adjustment,” Bailey said.
The warning comes shortly after Wall Street’s biggest drop in six months, triggered by U.S. President Donald Trump’s threat of new tariffs on China in response to Beijing’s rare earth export restrictions.
In response, the FSB will pivot from policy development to monitoring and facilitating the implementation of global financial reforms, emphasizing timely, consistent, and comprehensive execution across all jurisdictions.
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