FSB Reviews Processes and Transparency to Optimize Its Effectiveness
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.
Related Links
Keywords: International, Banking, Financial Stability, Procedural Guidelines, Processes and Transparency, FSB
Previous Article
ECB Issues Report on Self-Assessment of TARGET2 Against PFMIsRelated Articles
OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks
The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.