Financial Stability

he Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. It was established after the 2009 G-20 London summit in April 2009 as a successor to the Financial Stability Forum. The Board includes all G-20 major economies, FSF members, and the European Commission. It is based in Basel, Switzerland.

Background The Financial Stability Board emerged from the Financial Stability Forum (FSF), a group of finance ministries, central bankers, and international financial bodies. The FSF was founded in 1999 to promote international financial stability, after discussions among Finance Ministers and Central Bank Governors of the G7 countries, and a study which they commissioned.[2] The FSF facilitated discussion and co-operation on supervision and surveillance of financial institutions, transactions and events. FSF was managed by a small secretariat housed at the Bank for International Settlements in Basel, Switzerland.[3] The FSF membership included about a dozen nations who participate through their central banks, financial ministries and departments, and securities regulators, including: the United States, Japan, Germany, the United Kingdom, France, Italy, Canada, Australia, the Netherlands and several other industrialized economies as well as several international economic organizations.[4] At the G20 summit on November 15, 2008 it was agreed that the membership of the FSF will be expanded to include emerging economies, such as China. The 2009 G-20 London summit decided to establish a successor to the FSF, the Financial Stability Board. The FSB includes members of the G20 who were not members of FSF.[5] The Financial Stability Forum met in Rome on 28Ц29 March 2008 in connection with the Bank for International Settlements. Members discussed current challenges in financial markets, and various policy options to address them from this point forward.[6] At this meeting, the FSF discussed a report to be delivered to G7 Finance Ministers and Central Bank Governors in April 2008. The report identifies key weaknesses underlying current financial turmoil, and recommends actions to improve market and institutional resilience. The FSF discussed work underway at the International Monetary Fund (IMF) and Organisation for Economic Co-operation and Development (OECD) with regard to sovereign wealth funds (SWFs). The IMF is working closely with SWFs to identify a set of voluntary best practice guidelines, and is focusing on the governance, institutional arrangements and transparency of SWFs.[6] On April 12, 2008 the FSF delivered a report to the G7 Finance Ministers which details out its recommendations for enhancing the resilience of the financial markets and financial institutions. These are in five areas:[7] Strengthened prudential oversight of capital, liquidity and risk management Enhancing transparency and valuation Changes in the role and uses of credit ratings Strengthening the authorities' responsiveness to risks Robust arrangements for dealing with stress in the financial system [edit]Overview The FSB represents the G-20 leaders' first major international institutional innovation. Secretary of the US Treasury Tim Geithner has described it as "in effect, a fourth pillar" of the architecture of global economic governance. The FSB has been assigned a number of important tasks, working alongside the IMF, World Bank, and WTO. Chairman of the board is the Canadian Mark Carney, Governor of the Bank of Canada. he United Kingdom of Great Britain and Northern Ireland,[nb 5] commonly known as the United Kingdom (UK) or Britain, is a sovereign state located off the north-western coast of continental Europe. The country includes the island of Great Britain, the north-eastern part of the island of Ireland, and many smaller islands. Northern Ireland is the only part of the UK that shares a land border with another sovereign stateЧthe Republic of Ireland.[nb 6] Apart from this land border the UK is surrounded by the Atlantic Ocean, the North Sea, the English Channel and the Irish Sea. The United Kingdom is a unitary state governed under a constitutional monarchy and a parliamentary system, with its seat of government in the capital city of London. It is a country in its own right[10] and consists of four constituent countries: England, Northern Ireland, Scotland and Wales. The latter three of these are devolved administrations, each with varying powers,[11][12] based in their capital cities Belfast, Edinburgh and Cardiff respectively. Associated with the UK, but not constitutionally part of it, are the three Crown dependencies: Guernsey, Jersey and the Isle of Man.[13] The United Kingdom has fourteen British Overseas Territories.[14] These are remnants of the British Empire which, at its height in 1922, encompassed almost a quarter of the world's land surface and was the largest empire in history. British influence can still be observed in the language, culture and legal systems of many of its former territories. The UK is a developed country and has the world's seventh-largest economy by nominal GDP and eighth-largest economy by purchasing power parity. It was the world's first industrialised country[15] and the world's foremost power during the 19th and early 20th centuries.[16] The UK is still referred to as a great power and retains considerable economic, cultural, military, scientific and political influence internationally.[17][18] It is a recognised nuclear weapons state and its military expenditure ranks fourth in the world.[19] The UK has been a permanent member of the United Nations Security Council since its first session in 1946. It has been a member of the European Union and its predecessor the European Economic Community since 1973. It is also a member of the Commonwealth of Nations, the Council of Europe, the G7, the G8, the G20, NATO, the Organisation for Economic Co-operation and Development (OECD) and the World Trade Organization. Before 1707 Stonehenge, in Wiltshire, was erected around 2500 BC. Main articles: History of England, History of Wales, History of Scotland, History of Ireland, and History of the formation of the United Kingdom Settlement by anatomically modern humans of what was to become the United Kingdom occurred in waves beginning by about 30,000 years ago.[45] By the end of the region's prehistoric period, the population is thought to have belonged, in the main, to a culture termed Insular Celtic, comprising Brythonic Britain and Gaelic Ireland.[46] The Roman conquest, beginning in 43 AD, and the 400-year rule of southern Britain, was followed by an invasion by Germanic Anglo-Saxon settlers, reducing the Brythonic area mainly to what was to become Wales.[47] Most of the region settled by the Anglo-Saxons became unified as the Kingdom of England in the 10th century.[48] Meanwhile, Gaelic-speakers in north west Britain (with connections to the north-east of Ireland and traditionally supposed to have migrated from there in the 5th century)[49][50] united with the Picts to create the Kingdom of Scotland in the 9th century.[51] The Bayeux Tapestry depicts the Battle of Hastings and the events leading to it. In 1066, the Normans invaded England and after its conquest, seized large parts of Wales, conquered much of Ireland and settled in Scotland bringing to each country feudalism on the Northern French model and Norman-French culture.[52] The Norman elites greatly influenced, but eventually assimilated with, each of the local cultures.[53] Subsequent medieval English kings completed the conquest of Wales and made an ultimately unsuccessful attempt to annex Scotland. Thereafter, Scotland maintained its independence, albeit in near-constant conflict with England. The English monarchs, through inheritance of substantial territories in France and claims to the French crown, were also heavily involved in conflicts in France, most notably the Hundred Years War.[54] The early modern period saw religious conflict resulting from the Reformation and the introduction of Protestant state churches in each country.[55] Wales was fully incorporated into the Kingdom of England,[56] and Ireland was constituted as a kingdom in personal union with the English crown.[57] In what was to become Northern Ireland, the lands of the independent Catholic Gaelic nobility were confiscated and given to Protestant settlers from England and Scotland.[58] In 1603, the kingdoms of England, Scotland and Ireland were united in a personal union when James VI, King of Scots, inherited the crowns of England and Ireland and moved his court from Edinburgh to London; each country nevertheless remained a separate political entity and retained its separate political institutions.[59][60] In the mid-17th century, all three kingdoms were involved in a series of connected wars (including the English Civil War) which led to the temporary overthrow of the monarchy and the establishment of the short-lived unitary republic of the Commonwealth of England, Scotland and Ireland.[61][62] Although the monarchy was restored, it ensured (with the Glorious Revolution of 1688) that, unlike much of the rest of Europe, royal absolutism would not prevail. The British constitution would develop on the basis of constitutional monarchy and the parliamentary system.[63] During this period, particularly in England, the development of naval power (and the interest in voyages of discovery) led to the acquisition and settlement of overseas colonies, particularly in North America.