The Financial Stability Board (FSB) called for vigilance and proactive policies in the face of extreme market volatility due to global trade and economic uncertainties.

In an April 21 letter to G20 finance leaders, outgoing FSB Chair Klaas Knot said financial markets "have continued to function in an orderly manner" amid market turmoil in recent weeks. He said more work needs to be done to ensure financial stability through periods of heightened volatility, like the banking stress in March 2023 and the pandemic-induced market turmoil in March 2020.

The international body will deliver to the G20 in July policy recommendations meant to address financial stability risks. Knot also acknowledged that its cross-border payments roadmap has not yet yielded material improvements and that the group is unlikely to meet its objectives by the deadline in 2027. The FSB vowed to boost regional engagement with the private sector and regulators to encourage policy implementation.

Knot's term as FSB chair will end on July 1.