we used real - time input to focus on four critical nodes of the global financial system : financing of the real economy ; access to u. s. dollar funding ; meeting financial intermediaries ’ liquidity demands ; and monitoring counterparty risks. this open communication and real - time monitoring improved policymakers ’ clarity around executing emergency measures to help stabilize domestic economies. additionally, this information sharing helped fsb members ensure coordinated steps and minimize opportunities for harmful spillovers. throughout the covid event but especially in the spring of 2020, fsb members convened every week — sometimes every day. our staff in basel regularly presented data for members to consider and discuss, in addition to members sharing their own jurisdiction - specific information and analysis. to provide deeper analysis for policymakers, the fsb formed several expert groups to examine and assess specific issues as they unfolded. this coordination helped enable the swift and bold interventions that maintained market functioning globally. many of the supervisors in the fsb ’ s membership provided banks with flexibility for their capital and liquidity buffers and encouraged banks to work with borrowers on loan modifications. the fsb also supported the delay of non - critical work to reduce the operational burden on firms and authorities. collectively, these steps sent a strong signal about our resolve to lessen the economic fallout from the covid event and helped prevent a disorderly sale of assets. the supervisors and the regulators in the fsb membership also convened more frequently to discuss market developments and to coordinate on the measures they were taking. the fsb also cataloged the thousands of steps our members took to respond to the covid event so that a playbook of sorts is available for the future. getting broad stakeholder input was also important to the fsb and to me personally, particularly given the varied impact of the covid event and divergent paths to recovery. the fsb consulted directly with private - sector stakeholders, gathering input from academics, financial - sector participants, and trade associations. this input remains critical as we consider our path forward, including how to unwind emergency policy measures. moving from analysis to action : non - bank financial intermediation under the covid lens a key lesson of the covid event is that non - bank financial intermediation is a critical area for action — especially short - term funding markets, where the money market fund sector has more than $ 8 trillion in assets under management globally. during normal times, companies and retail investors treat shares in money market funds like cash — as fully fungi

##ble, riskless, and payable on - demand. but the funds ’ promise of liquidity and investors ’ resulting expectations are not always well - aligned with the liquidity of the instruments in which money funds invest. this misalignment — or “ liquidity transformation " — creates incentives for money market fund investors to redeem when market liquidity becomes scarce. 2 / 5 bis central bankers'speeches and that ’ s exactly what happened during the covid event. runs on some types of money market funds in march of last year were similar in scale to the devastating runs in 2008 and again contributed to stress in systemically important short - term funding markets. even before the covid event, the fsb had assembled a senior group from central banks and market regulators to assess vulnerabilities in the non - bank sector and to coordinate and drive forward any needed reform. we were fortunate to have had this group in place when the covid event brought these vulnerabilities into sharp focus. the fsb swiftly undertook a review of financial markets in march of 2020, which remains the most financially volatile and uncertain period of the covid event. the fsb ’ s november 2020 report to the g20, titled holistic review of the march market turmoil, set the stage for an ambitious work program aimed at enhancing resilience in non - bank financial intermediation. 1 one of the first fruits of that program was published a week ago. our report, policy proposals to enhance money market fund resilience, sets out a framework for assessing vulnerabilities in money market funds and a policy toolkit. 2 using the analysis of vulnerabilities contained in this report, each member will take a close look at the specific money fund vulnerabilities in its jurisdiction and will use the toolkit to address those vulnerabilities. to monitor for progress, the fsb, working with the international organization of securities commissioners, will review members ’ progress in two years. in five years, the fsb will then do a more thorough assessment across our membership of the effectiveness of the measures in addressing risks to financial stability. the aim of this work is to enhance money market fund resilience and minimize the need for future extraordinary central bank interventions to support the sector. lessons from the covid event the lessons learned from the covid event were not confined to the non - bank sector. in fact, the fsb is publishing a series of reports covering a broad range of