International body coordinating global financial regulation and the monitoring of systemic risks within the G20.
The Financial Stability Board is an international body created after the 2008 financial crisis, under the auspices of the G20, to coordinate at global level the work of national authorities and standard-setting bodies on financial regulation and the monitoring of systemic risks. It brings together the finance ministries, central banks and supervisors of the main economies. For the insurance sector, the FSB played a key role in identifying the potential systemic risks carried by very large groups, in connection with the IAIS's work on global systemically important insurers. It promotes standards aimed at preventing a failure from spreading to the whole financial system. The FSB has no binding power of its own but its influence is strong through peer pressure and the adoption of its recommendations by member jurisdictions. For the observer, it is the summit of the international financial stability architecture, where approaches to systemic risk, including in insurance, are debated.
The FSB's work on systemic risk in insurance fed the IAIS's development of a framework for monitoring activities liable to threaten financial stability.
FSB, Financial Stability Board, Conseil de stabilité financière