G20 Watchdog Warns of Global Market Crash Risk

The G20’s Financial Stability Board (FSB) has issued a strong warning about the rising threat of a global financial market crash. The organization said that inflated asset prices, high debt levels, and growing geopolitical tensions could lead to severe disruptions if markets correct sharply.

FSB Chair Andrew Bailey noted that several global markets now appear overvalued, posing a potential danger to economic stability. In a letter to G20 finance ministers, he urged countries to tighten cooperation and ensure that past financial reforms are properly implemented.

The watchdog’s warning comes amid growing concern about U.S.–China trade tensions and new U.S. tariffs, which have already rattled stock markets. Bailey said that sudden policy shifts could trigger an “abrupt and disorderly adjustment” in global markets.

He emphasized that while global liquidity remains strong, the financial system’s resilience is being tested by higher borrowing costs and geopolitical uncertainty. The FSB plans to shift its focus from designing new policies to enforcing existing ones that protect against systemic risks.

Experts believe that this alert reflects growing unease among G20 nations as economic headwinds and tech-driven volatility create new risks. The FSB’s call for stronger coordination highlights how fragile the global financial ecosystem has become.