We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is the Financial Stability Board?

Jessica Ellis
By
Updated: May 17, 2024
Views: 6,442
Share

The Financial Stability Board (FSB), is a cooperative institution created to advise world leaders on fiscal policy. A successor to an earlier organization, the Financial Stability Forum (FSF), the FSB was created in 2009 after a call by G20 leaders to broaden the scope of the forum for greater efficiency. Though there are many important services the FSB is intended to provide, its greatest mandate is assist financial stability throughout member nations and the larger world.

The original Financial Stability Forum created a discussion and advisory group that focused on national and global financial issues. The FSF brought together the heads of national and central banks, international market analysts, and other financial professionals and advisors with a significant viewpoint on international financial stability. Through committees and reports, the FSF attempted to improve communication, cooperation, and standards in the financial world. The 2009 shift to the Financial Stability Board attempted to broaden the scope of attention, bringing together financial ministries and professionals representing more than 20 countries, along with several international and multinational financial institutions.

One of the primary goals of the Financial Stability Board is to create voluntary safety and practice standards for financial institutions worldwide. These standards are developed as the result of research, studies, and analysis performed by the members of the FSB. By creating these standards, the general hope is that nations will be less vulnerable to some types of economic crashes, such as those created by economic bubbles.

Another critical goal of the FSB is to analyze and report on financial risks, or risks in other segments of activity that could significantly harm the global economy. In addition to assessing risks, committees and boards work to present possible plans of action to leaders in order to prevent risks from actualizing, or at least minimize the damage. In this mandate, the Financial Stability Board works cooperatively with international organizations, such as the International Monetary Fund (IMF) and the World Bank, to create indicators and early warning systems for various possible crises.

A stable financial system is crucial to the health of both national and global economy. The Financial Stability Board, while having no direct power, has a tremendous opportunity to influence or at least educate world leaders about safe and efficient regulatory policy that may prevent financial devastation. With a far broader scope than its predecessor, the FSF, the Financial Stability Board may be able to coordinate efforts on a wider and more effective basis than ever before.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Jessica Ellis
By Jessica Ellis
With a B.A. in theater from UCLA and a graduate degree in screenwriting from the American Film Institute, Jessica Ellis brings a unique perspective to her work as a writer for WiseGeek. While passionate about drama and film, Jessica enjoys learning and writing about a wide range of topics, creating content that is both informative and engaging for readers.

Editors' Picks

Discussion Comments
Jessica Ellis
Jessica Ellis
With a B.A. in theater from UCLA and a graduate degree in screenwriting from the American Film Institute, Jessica Ellis...
Learn more
Share
https://www.wisegeek.net/what-is-the-financial-stability-board.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.