The Financial Stability Board (FSB) is an international body established to promote global financial stability and coordinate regulatory and supervisory policies in the international financial system. It was established in 2009 in response to the global financial crisis and operates as a forum for cooperation and collaboration among financial authorities and international organizations.
Key functions and responsibilities of the Financial Stability Board include:
Monitoring and Early Warning: The FSB monitors and identifies potential vulnerabilities and risks in the global financial system to provide early warnings about emerging threats to financial stability.
Policy Coordination: The FSB facilitates coordination among its member authorities in developing and implementing regulatory and supervisory policies to address financial stability risks.
Standard-Setting: The FSB develops and promotes the implementation of international financial regulatory standards and guidelines across its member jurisdictions.
Enhancing Resilience: The FSB aims to enhance the resilience of the financial system by promoting stronger regulatory frameworks, risk management practices, and transparency.
Resolution Planning: The FSB works on improving the resolution framework for financial institutions, including those that are considered systemically important.
Shadow Banking: The FSB monitors and assesses developments in the shadow banking sector to ensure that potential risks are identified and addressed.
Cooperation with International Organizations: The FSB collaborates with international organizations such as the International Monetary Fund (IMF), the World Bank, and the Bank for International Settlements (BIS) to address global financial stability issues.
Peer Reviews: The FSB conducts peer reviews among its member jurisdictions to evaluate the implementation of international financial standards and guidelines.
The FSB membership includes representatives from central banks, regulatory authorities, and ministries of finance from major economies, as well as international organizations. The FSB operates as part of the broader international financial regulatory architecture and works in cooperation with other international bodies to ensure consistent and coordinated actions to maintain financial stability.