The FSB has a unique composition among international bodies, because it brings together senior policy makers from ministries of finance, central banks, and supervisory and regulatory authorities, for the G20 countries, plus four other key financial centres – Hong Kong, Singapore, Spain and Switzerland. In addition, it includes international bodies, including standard-setters and regional bodies like the European Central Bank and European Commission. This means it has all the main players who set financial stability policies across different sectors of the financial system are at one table. So when policies are agreed, they also have the authority to carry them out.
The FSB is not a treaty-based organisation. Policies agreed by the FSB are not legally binding, nor are they intended to replace the normal national and regional regulatory processes. Instead, the FSB acts as a coordinating body, to drive forward the policy agenda of its members to strengthen financial stability. It sets internationally agreed policies and minimum standards that its members commit to implement at national level.
The FSB regularly reports to the G20 which regularly endorses the FSB’s policy agenda and supports implementation of agreed international standards. But the FSB is not run by the G20 – our membership is somewhat wider, and the FSB comes to independent policy views on issues.