Financial Stability Board


The creation of the Financial Stability Board (FSB) was agreed at the G20 Summit held in London on 2 April 2009. The FSB replaces the Financial Stability Forum. All the members of the G20, as well as Spain, the Netherlands, Switzerland, Singapore and Hong Kong, are represented.

The FSB has been established to identify vulnerabilities in the global financial system and propose measures to mitigate them. It serves as a forum for governments, international organisations and standard-setting bodies which deal with financial stability.


The Financial Stability Board consists of:

  • The national authorities responsible for maintaining financial stability (Finance Ministers, Central Banks and/or market supervisory authorities) of the following countries: Argentina, Australia, Brazil, Canada, China, France, Germany, Hong Kong, India, Indonesia, Japan, Korea, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Switzerland, Turkey, the United Kingdom, the United States and the European Union (Central Bank and European Commission).
  • Standard-setting bodies (Basel Committee on Banking Supervision, Committee on the Global Financial System-CGFS, Committee on Payment and Settlement Systems-CPSS, International Association of Insurance Supervisors-IAIS, International Accounting Standards Board-IASB, International Organisation of Securities Commissions-IOSCO).
  • International institutions (Bank for International Settlements-BIS, IMF, World Bank and OECD).

Governance and activities

The FSB consists of a Chairperson, a Steering Committee (which provides operational guidance), the Plenary with member countries (a decision-making body which meets twice a year) and a Secretariat (hosted by the Bank for International Settlements in Basel).

The member countries of the FSB agree to undergo periodic peer reviews of their financial sectors and to adopt international financial standards and codes. 

With the assistance of its member organisations, including in particular the standard setting bodies, the FSB regularly publishes policy recommendations and guidelines to maintain financial stability.

It also collaborates with the IMF to conduct Early Warning Exercises aimed at identifying risks to financial stability.

Historical background

The forerunner of the FSB, the Financial Stability Forum (FSF) was founded in 1999 by the Finance Ministers and Central Bank Governors of the G7 countries in order to address certain weaknesses observed in the area of financial regulation during the Asian Crisis.

The FSF had 42 members, including ( in addition to the Chairperson, who was appointed in a personal capacity): three representatives of each G7 member country (the Finance Minister, a representative of the Central Bank and a representative from the main supervisory authority); a representative of the Reserve Bank of Australia and the Central Banks of the Netherlands, Hong Kong and Singapore; two representatives of the IMF; two representatives of the World Bank; a representative of the OECD; a representative of the BIS; two representatives of each of the following institutions: Basel Committee on Banking Supervision (BCBS), International Organisation of Securities Commissions (IOSCO) and International Association of Insurance Supervisors (IAIS); a representative of the International Accounting Standards Board (IASB); and one representative of each of the two expert committees of the Central Banks, namely the Committee on the Global Financial System and the Committee on Payment and Settlement Systems.

In October 2007 the FSF received a mandate from the G7 to analyse the causes of the financial crisis and put forward recommendations for enhancing the resilience of the financial markets and financial institutions. The FSF published its report in April 2008, and its recommendations were widely accepted internationally. The FSF was responsible for monitoring the implementation of these recommendations.

At the London G20 Summit of 2 April 2009, it was decided to broaden the membership of the FSF to include all the G20 countries (plus Spain and the European Commission), to strengthen its mandate and to change its name to “Financial Stability Board”.