THE FINANCIAL STABILITY BOARD: WHY SHOULD CSOs CARE ? . Matthew Martin, Development Finance International Washington, 15 April 2011. STRUCTURE OF PRESENTATION. What is FSB and how does it work ? What are its subsidiary bodies and who does what ? Why should CSOs care ?
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THE FINANCIAL STABILITY BOARD: WHY SHOULD CSOs CARE ?
Matthew Martin, Development Finance International
Washington, 15 April 2011
Financial Stability Board (FSB) established post-crisis by G20 – promoted from analytical body to coordinating and decisionmaking body on all financial regulation
Does not have power to enforce regulations in member jurisdictions – rather to set standards, exchange on best practices, try to standardise across jurisdictions and monitor their implementation
Members = G20 + important financial countries (HK/Singapore/Switz/Neths/Spain), but 11 have 3 seats, 6x2, 3x1 - LIC G20 members not admitted
Agreed at Seoul on « Regional Consultative Groups » - not clear if genuine consultation or dissemination, which countries to participate
Key actors are Chair, Secretariat and Working Groups, as well as mandates given to FSB by G20 itself
Plenary seen as largely rubber-stamp, committees and working groups do the technical work
Lack of formal procedures means Chair has strong power – can generate G20 mandates, influence WG or Committee member choice and recommendations
Some degree of uncertainty/overlap with IMF – eg IMF handling public debt issues (FSB private ?), publishing lots of analysis on bank regulation and taxation; and with continuing role of BIS (still regulation committee)
IMF helps dev.countries implement bank regulations; IMF/WB now gathering dev country views on regulations; some FSB affiliates help LICs implement
On issue of principle:
We have spent last 20 years fighting for accountability and transparency in IMF and WB with some success
This is the third pillar of the global economic governance system (fourth if incl WTO) and in the stone age on accountability and transparency
There is currently no access whatsoever for civil society and media therefore regulations are being decided by governments only, advised in many cases by private sector actors who are being regulated and their lobbyists
Also virtually no access for low-income countries
It covers key issues: