Financial Stability Board
What is the Financial Stability Board?
It’s an international financial regulator created by the G20 to advise world leaders on fiscal policy. The main objective of the Financial Stability Board (FSB) is to identify problems in the global financial system and recommend action to address them.
Where have you heard about the Financial Stability Board?
The FSB was created in 2009 in the wake of the financial crisis. While it doesn’t have any direct power over national economies, it can exert a huge amount of influence and educate world leaders about safe financial practice that might prevent similar financial devastation to what we experienced in 2008.
What you need to know about the Financial Stability Board.
As part of its mandate, the FSB promotes safety standards for financial institutions worldwide based on research and analysis carried out by its members. By putting these in place, it’s hoped that countries will be less vulnerable to financial crashes created by economic bubbles.
The FSB also monitors financial risks to the global economy, and makes recommendations to try to minimise the potential damage of economic threats. It works closely with organisations such as the IMF and World Bank.