Bank of England Governor Andrew Bailey has called for stronger international cooperation to maintain financial stability, warning that uncertainty continues to affect global economic expectations.
In a letter to G20 finance ministers and central bank governors on Monday, Bailey said global coordination is essential and urged vigilance against sudden market disruptions. Bailey, who chairs the Financial Stability Board, said countries cannot ensure stability on their own and must work together to respond to global shocks.
The G20 created the Financial Stability Board after the 2008 financial crisis to help protect the global financial system. The group includes countries that make up about 85% of global GDP and two-thirds of the world’s population.
Earlier on Monday, the Financial Stability Board presented a new plan to manage climate-related financial risks. However, it paused further policy development after the United States stepped back from joint efforts.
Bailey said the board’s diverse membership allows it to deliver on its mandate during both calm and difficult periods. He also pointed to recent events in April, when U.S. tariffs caused sharp movements in financial markets.
Although conditions have since improved, he said the board is reviewing those events to learn lessons.
He added that the board is monitoring markets closely and is ready to act if needed.
