Financial Stability Board (FSB)
AdvancedThe Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system, coordinating the work of national financial authorities and international standard-setting bodies.
The FSB was established in 2009, after the 2008 financial crisis, by the G20 group of major economies. It replaced the Financial Stability Forum, created in 1999. It is hosted by the Bank for International Settlements in Basel.
Its members include finance ministries, central banks and financial regulators from major economies, as well as international organisations such as the International Monetary Fund, World Bank and international standard-setting bodies.
The FSB’s work has included identifying global systemically important banks and insurers, which face extra requirements; developing standards for resolving failing banks without taxpayer bailouts; reforming over-the-counter derivatives markets; and monitoring risks from non-bank financial institutions, crypto assets and climate change.
For example, the FSB publishes an annual list of global systemically important banks, which must hold additional capital and meet stricter requirements.
The FSB’s recommendations are not legally binding. Members commit to implementing agreed standards through their national laws and regulations. The FSB also created the Task Force on Climate-related Financial Disclosures.
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