In November 2010, the Financial Stability Board (FSB) announced arrangements to expand and formalise outreach beyond its membership. To this end, six regional consultative groups were established to bring together financial authorities from FSB member and non-member countries to exchange views on vulnerabilities affecting financial systems and on initiatives to promote financial stability.

Today, the Financial Stability Board hosted the second meeting of the FSB Regional Consultative Group for Europe in Basel. Members discussed the FSB's evolving policy framework for the shadow banking system, extension of the G-SIFI policy framework to the domestic systemically important banks and non-banking entities, and the process of deleveraging in the European financial sector. Discussions on shadow banking included the areas of banks' interaction with shadow banking entities, money market funds, other shadow banking entities, retention requirements and transparency in securitisation, and securities lending and repos (repurchase agreements). The discussions on the extension of the G-SIFI framework included the policy development work underway at the Basel Committee on Banking Supervision and the International Association of Insurance Supervisors, as well as the implications of the initiative for the member countries. The group also discussed the nature and impact of deleveraging in the European financial sector.

The FSB Regional Consultative Group for Europe is co-chaired by Tom Scholar, Second Permanent Secretary, HM Treasury, United Kingdom and Yves Mersch, Governor, Banque centrale du Luxembourg. Membership includes financial authorities from Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Spain, Switzerland, Sweden, United Kingdom and the Group of International Finance Centre Supervisors. The inaugural meeting of this Group was held on 6 December 2011 in Luxembourg.