Established in April 2009, the Financial Stability Board (FSB) has its headquarters in Basel, Switzerland. It was formerly known as the Financial Stability Forum (FSF). The primary goal of the FSB is to monitor and provide recommendations concerning the global financial system.
The FSB was created following the G20 London summit in 2009, taking the place of the FSF. Its membership comprises the G20 major economies, members of the FSF, and the European Commission. The board is hosted and funded by the Bank for International Settlements, functioning as a not-for-profit Swiss association.
The FSB plays a crucial role in global economic governance, working alongside other significant institutions such as the IMF, World Bank, and WTO. Unlike certain multilateral financial institutions, the FSB relies on informal cooperation among its members. It operates without a formal treaty basis or binding powers, emphasizing collaborative efforts to enhance financial stability.
India became a member of the FSB in 2009 as part of the G20 initiative, marking its commitment to global financial stability. The country actively participates in the FSB's Plenary with three representatives: the Secretary (Economic Affairs), the Deputy Governor of the RBI, and the Chairman of SEBI.
India engages regularly through calls and meetings to discuss and align its views with the FSB's objectives. To ensure effective coordination of India's perspectives, the FSDC Secretariat within the Department of Economic Affairs plays a vital role.
The Financial Stability Board serves as an essential platform for fostering international financial cooperation, particularly during times of economic uncertainty. India's proactive involvement underscores its dedication to maintaining a stable global financial environment.
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