Stand:updated on 08.05.2024 Financial Stability Board - FSB
The Financial Stability Board (FSB) is an international body comprising high-ranking officials from ministries of finance, central banks and supervisory authorities of the G20 countries and Spain. Further members are representatives of the European Commission, of international standard setting bodies (BCBS, IAIS, IOSCO, IASB and CPMI) and major financial organisations (IMF, World Bank, BIS, OECD, ECB, CGFS and the ECB Banking Supervision). The FSB monitors and makes recommendations about the global financial system.
The FSB emerged in 2009 as the successor to the Financial Stability Forum (FSF). The latter had been set up in 1999 following a proposal from the then Bundesbank President, Hans Tietmeyer, partly as a response to the Asian crisis.
On 2 April 2009, the Heads of State and Government of the G20 countries adopted a fundamental reform of the FSF at their summit in London, which included an expanded membership and a broadened mandate. The membership now includes all G20 countries, Spain and the European Commission. To cope with increased demands and expectations it was decided to place the FSF on stronger institutional grounds and re-launch it as the Financial Stability Board (FSB).
The FSB consists of the superordinated Plenary, a Steering Committee and a secretariat, which is based in Basel, Switzerland, at the Bank for International Settlements. The Plenary is the decision-making body of the FSB and meets twice a year in person and twice a year via webconferences. The plenary meetings are supplemented by regional meetings in Africa, the Americas, Asia and Europe as well as by the numerous meetings of the different FSB committees and working groups.
Monitoring of the international financial system
Among the main functions of the FSB is to monitor the international financial system for vulnerabilities and identify the actions needed to address them. The FSB also coordinates and promotes the exchange of information between the different authorities. In addition, the FSB plays a prominent role in cross-sectoral crisis management and resolution.
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The FSB is a liaison committee between the G20 countries and the standard setting bodies. In close coordination with the global standard setters, the FSB’s work targets the implementation of the G20’s decisions. In this context, the FSB’s main objective is to identify and reduce global systemic risks and maintain the stability of the financial system.
