The Financial Stability Board must identify new threats and refine existing rules: President

WASHINGTON (Reuters) – The Financial Stability Board needs to devote more resources to identifying new threats when reviewing ongoing reforms, its president said Sunday.

Randal Quarles, who took the presidency of the FSB in November and is vice-president of the US Federal Reserve's watch, aims to chart a new course for the international regulator.

In particular, he said the organization should refocus its efforts on finding unknown threats in the market and also called on regulators to review existing reforms to see if they could be streamlined.

"It is time for the FSB to devote more energy to the future," he said in Hong Kong.

In particular, Quarles said the FSB would re-examine its vulnerability assessment framework in order to identify new threats in the marketplace. He also said that the FSB is evaluating the effectiveness of existing reforms and looking for ways to make them more effective.

Quarles was named to the Fed by President Donald Trump in 2017 and sought to streamline US rules without significantly weakening them. He presented a similar argument for the FSB's efforts.

"If the reforms are unnecessarily burdensome and we can achieve strong resilience in a more efficient and simpler way, we should be able to stimulate sustainable financial and economic activity, benefiting all," he said.

He also called on the CSF to strengthen its relations and transparency with all parties concerned, including the financial sector, to ensure that all perspectives are taken into account.

"The FSB must retain its legitimacy to be effective, and to do this, we must work hard to hear all parties involved in the deliberations," he said.