To strengthen the surveillance of financial markets, the G20 leaders decided in April 2009 to expand the membership of the former Financial Stability Forum (FSF) and renamed it the Financial Stability Board (FSB).
What is the Financial Stability Board (FSB)?
The Financial Stability Board (FSB) is a global organization that regulates and makes recommendations regarding the global financial system. The FSB’s creation came after the G20 Summit in London in April 2009. Headquartered in Basel, Switzerland, the board includes all G20 major economies. Germany’s Dietrich Domanski is the current Secretary-General of the FSB, as of 2019.
How the Financial Stability Board Works
The Financial Stability Board promotes and ensures global financial stability by monitoring the global financial scenario and making recommendations. The FSB consists of 68 member institutions. It comprises several central banks, ministries of finance, and supervisory and regulatory authorities from 25 jurisdictions, as well as 10 international organizations and six Regional Consultative Groups (RCGs).
The FSB operates through a three-stage process. The process ensures smooth coordination, cooperation, and consistency throughout its operations.