Financial Stability Board

The Financial Stability Board, or FSB, is an international body that promotes the stability of the global financial system. Its mandate is to identify systemic vulnerabilities and coordinate national authorities and international standard-setters in developing and implementing effective financial regulation, supervision and crisis-management policies.

Origin and institutional role

The FSB was established in 2009 as the successor to the Financial Stability Forum, with a strengthened institutional basis after the global financial crisis. It brings together national financial authorities, international financial institutions and standard-setting bodies, and reports to the G20 on its work.

Core mandate

The FSB addresses weaknesses that could threaten the international financial system while respecting the responsibilities of national authorities and standard-setting bodies.

• It assesses vulnerabilities affecting the global financial system and identifies regulatory, supervisory or related actions required to address them.
• It coordinates national financial authorities and international standard-setters in developing strong regulatory and supervisory policies.
• It monitors market developments and advises on their implications for regulatory policy, including the systemic consequences of financial innovation.
• It supports contingency planning and cooperation in the management and resolution of cross-border financial crises.

Implementation and limits

The FSB promotes implementation through international coordination, monitoring, thematic and country peer reviews, and disclosure of progress. Its standards and recommendations are not legally binding; member jurisdictions commit to implement agreed international standards and undergo assessment, so effectiveness depends mainly on national action, peer review and international pressure.

• The FSB collaborates with bodies such as the IMF, World Bank and sectoral standard-setters while avoiding duplication of their mandates.
• Its role concerning technologies such as artificial intelligence is confined to their implications for financial stability and regulation, not general global AI governance.