The last Finance Ministers and Central Bank Governors Meeting (FMCBG) was held in Washington DC on 12-13 October 2022. This was the fourth Indonesia G20 FMCBG meeting, following the first FMCBG in February 2022, the second FMCBG in April 2022, and the third FMCBG in July 2022. The fourth FMCBG was held in conjunction with the 2022 International Monetary Fund (IMF) and World Bank Group Annual Meeting.
The fourth FMCBG discussion has six priority agendas: the global economy, international financial architecture, financial sector regulations, infrastructure investment, sustainable finance, and sustainable taxation. Each member country's Finance Minister and Central Bank Governor participate in the discussion. The discussion then resulted in a reaffirmation of commitment to solving the increasing global economic challenges and focusing on concrete results (concrete action).
The global economy was the first topic on the agenda to be discussed. G20 reaffirmed a well-calibrated, well-planned, and well-communicated policy commitment to support sustainable recovery and mitigate the effects of a pandemic in order to achieve strong, sustainable, balanced, and inclusive growth through this agenda. G20 is also increasing collective and coordinated action to support pandemic prevention, preparedness and response through the establishment of a Financial Intermediary Fund (FIF). Furthermore, G20 is committed to considering all available tools to address food and energy insecurity as well as cost-of-living pressures experienced by many countries.
The second agenda is international financial architecture. Through this agenda, G20 is committed to promoting the resilience of the international financial architecture through a number of concrete steps, including enhancing long-term global financial resilience, monitoring risks of increased volatility in capital flows, negative spillovers, and uneven market conditions. Furthermore, G20 is committed to supporting the distribution of special drawing rights (SDR) to assist the most vulnerable groups, increasing multilateral development banks' resource capacity through a review of the capital adequacy framework, and ensuring the implementation of a common framework debt treatment outside of DSSI.
The third agenda item on the fourth FMCBG discussion is financial sector regulation. This discussion related to addressing climate-related financial risks, monitoring and regulatory approaches to crypto assets, reporting cyber incidents and improving cross-border payments Concrete steps taken by the G20 in terms of financial sector regulations include strengthening the global financial sector through increased risk monitoring and maximizing the benefits of technology and digitalization. G20 welcomed the Financial Stability Board's assessment of "stable coins" and crypto asset market activity oversight and regulation. Furthermore, G20 received final guidance by BIS CPMI and IOSCO which confirmed that the principles for financial market infrastructure apply to the importance of systematic stable coin governance.
The fourth agenda is infrastructure development. Through this agenda, G20 is committed to revitalizing sustainable, inclusive, accessible and affordable infrastructure. Several concrete steps are included in the fourth agenda, namely voluntarily and independently supporting the G20/Global Infrastructure (GI) Hub Framework on the best way to reach private sector participation, supporting transformative infrastructure, supporting InfraTracker 2.0 and G20 Case Study Summary in Digital Financial Infrastructure, and encouraging the quality of infrastructure investment through discussions on the development of Quality Infrastructure Investment (QII) Indicators, as well as conducting discussions on the future arrangement of global infrastructure.
The next agenda discussed is sustainable finance. G20 is committed to support a sustainable economic report through building a financial transition framework that recognizes climate transition activities, including the energy transition, and enhances the credibility of financial institution commitments. Furthermore, G20 is committed to increasing sustainable finance by focusing on increasing accessibility and affordability, as well as discussing ways to improve policies that incentivize finance and investment and support a green economy transition in order to meet carbon-free targets.
Finally, the sixth item on the agenda for this discussion is international taxation. In this regard, G20 continues to discuss developments and steps to implement two pillars of the G20/OECD International tax package. Concrete steps taken by G20 are supporting the ongoing work on Pillar I, welcoming the completion of the Global Anti-Base Erosion (GloBE) Model Rules on Pillar II, calling for the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) to finalize the Pillars I and complete the negotiation of the subject to tax rule (STTR) in Pillar II. Furthermore, G20 is committed to strengthening the tax and development agenda in accordance with the G20 Ministerial Symposium on Tax and Development in July 2022, as well as focusing on the G20/OECD Roadmap on Developing Countries and International Tax.
