BaFin - Navigation & Service

Stand:updated on 01.04.2016 Financial Stability Board - FSB

The Financial Stability Board (FSB) is an international body comprising high-ranking officials: The FSB is made up of representatives from ministries of finance, central banks and supervisory authorities of the G20 countries, Spain and the European Commission as well as representatives of international standard setting bodies (BCBS, IAIS, IOSCO and others) and major financial organisations (the IMF, the World Bank, BIS, the ECB and others). The FSB discusses issues with high systemic importance for the stability of the international financial system.

The FSB emerged in 2009 as the successor to the Financial Stability Forum (FSF). The FSF 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 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 a 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 organ of the FSB and meets twice a year. The plenary meetings are supplemented as required by regional meetings in Latin America, Asia or Europe and numerous teleconferences.

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 these vulnerabilities. The FSB also coordinates and promotes the exchange of information between the authorities. In addition, the FSB is to play a more prominent role in (cross-border) crisis management.

Video

"How is the financial system safer, simpler and fairer than before?"
About G20's work to reform the financial system.

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 in 2011 targeted 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. To date, the work of the FSB has focused on:

  • dealing with systemically important financial institutions (SIFIs) or global systemically important financial institutions (G-SIFIs)
  • the regulation of the shadow banking system
  • providing principles for cross-border resolutions/restructuring of major institutions
  • reforming over-the-counter (OTC) derivatives markets
  • setting up a macroprudential framework including courses of action.

Additional information

Did you find this article helpful?

We appreciate your feedback

Your feedback helps us to continuously improve the website and to keep it up to date. If you have any questions and would like us to contact you, please use our contact form. Please send any disclosures about actual or suspected violations of supervisory provisions to our contact point for whistleblowers.

We appreciate your feedback

* Mandatory field