Financial Stability Board (FSB)

The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system to promote stability and reduce systemic risk. Established in 2009 after the financial crisis, the FSB works with national regulators, central banks, and international organizations to set standards and implement policies that enhance market resilience. Key areas of focus include regulatory reform, financial market infrastructure, and crisis management.

Example

The FSB collaborates with global regulators to develop guidelines for banks on maintaining adequate capital reserves, reducing the likelihood of another financial crisis.

Key points

• Monitors global financial stability and systemic risks.

• Sets international regulatory standards to enhance financial resilience.

• Coordinates efforts among national regulators and international bodies.

Quick Answers to Curious Questions

How does the FSB contribute to global financial stability?

The FSB develops standards and policies that address systemic risks, promoting robust regulatory frameworks across countries to prevent financial crises.

What are the FSB’s main areas of focus?

Key areas include financial regulation, market infrastructure, and managing risks posed by systemically important financial institutions.

How does the FSB influence national financial policies?

Through its guidelines and recommendations, the FSB shapes national regulations, encouraging consistency in financial oversight and risk management practices globally.