The Banking Executive Magazine - April 2021

World Bank/IMF Spring Meetings 2021 ing capacity recently accomplished through the doubling of the new arrangements to borrow and a new round of bilateral borrowing agree- ments. We remain committed to re- visiting the adequacy of imf quotas and will continue the process of imf governance reform under the 16th general review of quotas, including a new quota formula as a guide, by december 15, 2023. We will continue our cooperation for a globally fair, sustainable, and mod- ern international tax system. We re- main committed to reaching a global and consensus-based solution build- ing on the solid basis of the reports on the blueprints for pillar 1 and pil- lar 2, by mid-2021. We acknowledge the progress made to date and urge the g20/oecd inclusive framework on base erosion and profit shifting (beps) to address the remaining outstanding issues with a view to achieving an agreement by the set deadline. We acknowledge the progress made on implementing the internationally agreed tax transparency standards and support the organization for eco- nomic cooperation and develop- ment’s (oecd) ongoing work to explore proposals for automatic ex- change of information on crypto-as- sets. We look forward to a constructive discussion at the high level tax symposium on tax policy and climate change in july. We take note of the oecd updated report on tax and fiscal policy in response to the covid-19 crisis. We reaffirm our engagement to support developing countries in strengthening the capac- ity to build sustainable tax revenue bases and ask the oecd to prepare a report on progress made through their participation at the g20/oecd in- clusive framework on beps and iden- tify possible areas where domestic resource mobilization efforts could be further supported. We commit to maintaining a com- prehensive and united effort to re- spond to the covid-19 crisis and ensuring that the financial sector continues to provide support to the economy, while preserving financial stability. We reiterate our commit- ment to the fsb’s principles agreed in april 2020 underpinning the national and international responses to covid- 19. Most of the support measures will remain in place for as long as economic and health circumstances require, recognizing that there are potential risks arising from withdraw- ing them too early. We welcome the fsb report discussing the benefits of a flexible state-contingent approach when considering whether to extend, amend, or end support measures, in a gradual and targeted way, to mini- mize long-term financial stability risks. We call on the fsb to continue to support international coordination on covid-19 response measures in relation to financial stability, includ- ing through information sharing and through monitoring consistency with the agreed international standards. We welcome the fsb evaluation re- port on the effectiveness of too-big- to-fail (tbtf) reforms for systemically important banks. We take note of the key findings that effective tbtf reforms bring net benefits to the society and we will work to address the gaps in reforms identified in the evaluation. We commit to taking stock of the les- sons learned from the pandemic from a financial stability perspective. Building upon the fsb “holistic re- view” of the march 2020 market tur- moil, we will work to strengthen the resilience of the non-bank financial intermediation (nbfi) sector with a systemic perspective and look for- ward to the fsb presenting a consul- tation report on policy proposals to enhance money market fund re- silience in july, a final report in octo- ber and an update on the broader workplan for nbfis. We commit to a timely and effective implementation of the g20 roadmap to enhance cross-border payments, endorsed at the g20 riyadh 2020 summit, also to facilitate the flow of remittances. We look forward to the fsb progress re- port on how regulatory, supervisory and oversight frameworks address so-called “global stablecoins”, and to a broad discussion on the cross-bor- der use of central bank digital cur- rencies and wider implications for the international monetary system. We reiterate that no so-called “global stablecoins” should commence op- eration until all relevant legal, regu- latory and oversight requirements are adequately addressed through appro- priate design and by adhering to ap- plicable standards. We look forward to the fsb report on harmonization of cyber incident reporting in the finan- cial sector. We also look forward to a progress report on transition away from libor. We welcome the addi- tional clarity provided by the an- nouncements of cessation dates for libor benchmarks and reiterate the importance of orderly transition be- fore end-2021. We reaffirm our support for the finan- cial action task force (fatf), as the global standard-setting body for pre- venting and combating money laun- dering (ml), terrorist financing (tf) and proliferation financing (pf). We look forward to the outcomes of the fatf’s current works on opportunities and challenges of digital transformation in tackling financial crime. We ac- knowledge the relevance of the sec- ond 12-month review on the global implementation of the fatf standards on virtual assets and virtual assets service providers, recognising that so-called stable coins are covered by the fatf standards. We welcome on- going work especially by the fatf on the links between environmental protection and the prevention of corruption and illicit finance associ- ated with the illegal exploitation of natural resources, recognizing the impact of environmental crime on climate and bio-diversity. We con- firm our commitment to tackling all sources, techniques and channels of ml/tf/pf, deserving a particular atten- tion to covid-19-connected financial crimes. We commit to further strengthening the fatf’s global net- work of regional bodies in order to reinforce the effective implementa- tion of the fatf standards. the BANKING EXECUTIVE 32 ISSUE 148 APRIL 2021