FSB reviewed its processes and transparency to maximize its effectiveness for the next phase of its work focused on promoting global financial stability. The review confirmed the existing strengths of FSB and identified scope to enhance certain work processes, reinforce the member-driven character of FSB work, further foster effective communication, and strengthen engagement with external stakeholders. Additionally, FSB has amended its Procedural Guidelines to reflect the outcomes of the review. FSB will review its processes and transparency again, including the experience with implementing these recommendations, in 2021.
To ensure effectiveness of its operations as it moves to the next phase of the work, membership of FSB has reviewed how FSB works. In January 2018, a working group was established to review the processes of FSB for the following:
- Identification, consideration, and actions regarding its policy work and priorities to align with its core financial stability mandate
- The organization of work under the FSB’s Committee structure and the associated work processes as set out in the FSB Procedural Guidelines to increase efficiency
- The transparency and accountability of FSB, including the information that FSB makes public about its activities, and its current practices as regards consultation with stakeholders.
The working group consisted of Plenary members, reflecting the diversity of FSB membership. The group was chaired by Rob Stewart, Associate Deputy Minister of the Canadian Ministry of Finance. While the review did not detect a need for any major changes in the manner in which FSB is organized and operates, as part of the review, FSB Plenary members also identified a number of specific areas where FSB’s processes and transparency can be further improved. FSB has agreed a set of concrete measures in these areas.
The recommended actions include enhancing processes for policy prioritization and developing future work programs anchored in FSB’s financial stability mandate; steps to further enhance the efficiency of senior-level meetings and the work processes of working groups and workstreams; and actions to improve communication and engagement with external stakeholders. One specific recommendation relates to the six Regional Consultative Groups (RCGs) of FSB. RCGs are an important mechanism for a wider range of authorities to exchange views on financial stability issues, including for non-FSB member authorities to provide feedback on the direction of the work of FSB. FSB has decided to conduct a review in 2019, with the involvement of RCG members, on how to enhance the effectiveness of RCGs as an outreach and feedback mechanism.
Keywords: International, Banking, Financial Stability, Procedural Guidelines, Processes and Transparency, FSB