Financial Stability Board (FSB)

Source: FSB
GS II: Important International institutions, agencies and fora- their structure, mandate

Overview

The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system

The FSB promotes international financial stability.
To achieve this FSB coordinates national financial authorities and international standard-setting bodies
They work toward developing strong regulatory, supervisory and other financial sector policies.
Encouraging coherent implementation of these policies across sectors and jurisdictions.
Policies are implemented by jurisdictions and national authorities.

Assess vulnerabilities affecting the global financial system and regulatory, supervisory and related actions needed to address these vulnerabilities and their outcomes.
Coordination and information exchange among authorities responsible for financial stability.
Monitor and advise on regulatory policy.
Monitor and advise regarding regulatory standards.
Undertake joint strategic reviews of the international standard-setting bodies
Establishing and supporting supervisory colleges on guidelines.
Future planning support for cross-border crisis management.
Early warning exercise in collaboration with the International Monetary Fund (IMF).
Promote
- Member jurisdictions’ implementation of agreed commitments
- Standards
- Policy recommendations

Standing Committee on Assessment of Vulnerabilities (SCAV): main mechanism for identifying and assessing risks in the financial system.
Standing Committee on Supervisory and Regulatory Cooperation (SRC): Supervisory analysis or framing a regulatory or supervisory policy response to a material vulnerability identified by SCAV.
Standing Committee on Standards Implementation (SCSI): Monitoring the implementation of agreed FSB policy initiatives and international standards.
Standing Committee on Budget and Resources (SCBR): Resources and budget and presents recommendations as necessary to the Plenary.

The FSB’s decisions are not legally binding on its members

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