Wednesday, August 24, 2011

FSB - Financial Stability Board

The Financial Stability Board is an international body that monitors and makes recommendations about the global financial system. It was established after the 2009 G-20 London summit in April 2009 as a successor to the Financial Stability Forum (FSF). The Board includes all G-20 major economies, FSF members, and the European Commission. It is based in Basel, Switzerland. ~wiki

The FSF was founded in 1999 to promote international financial stability, after discussions among Finance Ministers and Central Bank Governors of the G7 countries, and a study which they commissioned. The FSF facilitated discussion and co-operation on supervision and surveillance of financial institutions, transactions and events. FSF was managed by a small secretariat housed at the Bank for International Settlements in Basel, Switzerland. ~wiki

History: FSF -> FSB

"The Financial Stability Forum met in Rome on 28–29 March 2008 in connection with the Bank for International Settlements. Members discussed current challenges in financial markets, and various policy options to address them from this point forward. At this meeting, the FSF discussed a report to be delivered to G7 Finance Ministers and Central Bank Governors in April 2008. it identifies key weaknesses underlying current financial turmoil, and recommends actions to improve market and institutional resilience. The FSF discussed work underway at the International Monetary Fund (IMF) and Organisation for Economic Co-operation and Development (OECD) with regard to sovereign wealth funds (SWFs). The IMF is working closely with SWFs to identify a set of voluntary best practice guidelines, and is focusing on the governance, institutional arrangements and transparency of SWFs. On April 12, 2008 the FSF delivered a report to the G7 Finance Ministers which details out its recommendations for enhancing the resilience of the financial markets and financial institutions. These are in five areas:
  •    Strengthened prudential oversight of capital, liquidity and risk management
  •    Enhancing transparency and valuation
  •    Changes in the role and uses of credit ratings
  •    Strengthening the authorities' responsiveness to risks
  •    Robust arrangements for dealing with stress in the financial system"

FSF/FSB Chairpersons serve in a personal capacity. Following is a list of former and current chairs:
FSF Chairpersons
  • Andrew Crockett, General Manager of the Bank for International Settlements (1999 - 2003)
  • Roger W.Ferguson, Vice Chairman of the Board of Governors of the Federal Reserve System (2003 - 2006)
  • Mario Draghi, Governor of the Banca d'Italia (2006 - 2009)
FSB Chairperson:
  • Mario Draghi, Governor of the Banca d'Italia (2009 - )

Member institutions:

FSB publications: here
List of FSF releases at bis: FSF releases


[Mrt: more to be added later - checking research documents and publications.]

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