The FSB has been coordinating several additional initiatives to create continuous markets and to address the fault lines that lead to the global financial crisis. Some of these aim at improving the information available about individual financial institutions:

  • Addressing data gaps, including in the data shared among authorities on the risk exposures and funding of global systemically-important banks.

  • Improving the risk disclosures made by banks to investors and counterparties, for example through practical recommendations made last year by a private sector Enhanced Disclosure Task Force, in which the FSB brought together banks, investors and other stakeholders.

  • Strengthening accounting standards and making financial accounts more internationally comparable, by encouraging the International Accounting Standards Board and the US Financial Accounting Standards Board to agree on high-quality converged standards.

Other initiatives will improve the information available about financial markets:

  • Reforming the processes for setting financial benchmarks, so that earlier market abuses such as occurred with LIBOR and other benchmarks are not repeated.

  • Reducing reliance on credit ratings and improving oversight of credit rating agencies

Initiatives such as these will enable authorities and markets to better understand the risks faced not only by individual firms but also the system as a whole, and that better understanding will itself make the system more stable.