FSB Chair warns G20 on sovereign bond volatility, private credit and AI risks

The FSB Chair's letter to G20 Finance Ministers and Central Bank Governors, submitted ahead of their 15 October meeting, flags heightened volatility in sovereign bond markets, vulnerabilities in private credit and risks tied to artificial intelligence. It introduces five reports the FSB is delivering, covering global stablecoin arrangements, public sector backstop funding, AI adoption, regulatory modernisation and G20 implementation monitoring.

• Bailey flags heightened volatility in sovereign bond markets, vulnerabilities in private credit and AI-related risks as live concerns.
• The letter introduces five FSB reports to the G20, including the stablecoin note published alongside it on 12 October 2026.
• The Thematic Review on Public Sector Backstop Funding, published 9 October, finds further work is needed to complete implementation of Key Attribute 6.
• The FSB is delivering a Consultation Report on Regulatory and Supervisory Modernisation and a G20 Implementation Monitoring Review Report.
• The letter was submitted ahead of the G20 ministers' and governors' meeting on 15 October 2026.

Executive summary

Andrew Bailey, Chair of the Financial Stability Board, submitted his letter to G20 Finance Ministers and Central Bank Governors ahead of their meeting on 15 October 2026. The letter calls for continued vigilance in addressing the many risks to the…

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