G20 Endorses FSB's Charter to Promote Financial Stability
The G20 leaders at the Pittsburgh Summit endorsed the Charter to formally establish the Financial Stability Board (FSB).
In April 2009, the G20 leaders agreed that the former Financial Stability Forum will be re-launched as the FSB, with a broadened mandate to promote financial stability, expanded membership, stronger institutional basis and enhanced capacity. The Charter sets out its objectives, mandate, membership and organisational processes.
The FSB’s objective is to co-ordinate at the international level the work of national financial authorities and international standard setting bodies (SSBs) in order to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies. In collaboration with the international financial institutions, the FSB will address vulnerabilities affecting financial systems in the interest of global financial stability.
Mario Draghi, governor of the Bank of Italy, chairs the FSB. Its secretariat is located in Basel, Switzerland, and hosted by the Bank for International Settlements.