The Banque de France on the Financial Stability Board (FSB)

The Banque de France also contributes to the Financial Stability Board (FSB), an organisation made up of finance ministries, central banks and other financial authorities from 24 countries. This organisation coordinates internationally the work conducted by national authorities and international standards bodies, and drafts orientation documents that aim to strengthen financial stability.

The FSB, an autonomous institution whose secretariat is at the BIS, replaced in April 2009 the Financial Stability Forum (FSF) that was created in 1999 at the initiative of the finance ministers and central bank governors of the G7 countries, following the financial crises of 1997 and 1998.

This change supported the institutionalisation of what had previously been an informal forum. When it was formed, the FSF sought to better coordinate policies for financial stability. Since April 2009, the new FSB has an expanded mandate: assess the vulnerabilities affecting the financial system and identify and oversee action needed to address them; promote information exchange  among authorities responsible for financial stability; monitor financial market developments ; define best regulatory practices; undertake strategic reviews with the IMF or with the BIS committees to ensure that policies are properly followed; collaborate with the IMF in jointly conducted early warning exercises; coordinate the work of organisations that set standards for purposes of financial stability.

Since the start of the financial crisis, the FSB, strengthened by its close collaboration with the IMF and the BIS committees in charge of surveillance and supervision issues, has been the venue for decision-making around reforms of financial market and financial institution supervision, and prudential rules, sought by the G20 member countries.

There are three representatives for each country on the FSB. For France, these are representatives of the Economy Ministry, the Finance Ministry, the Banque de France and the Autorité des Marchés Financiers (AMF). The Banque de France represents France alone on the Standing Committee on Assessment of Vulnerabilities as well as the Steering Committee. The Board meets twice a year in plenary session and for the Steering Committee. It also organises specialised round tables with the private sector on specific current topics related to financial stability.

Updated on: 06/12/2018 10:34