The financial stability board why should csos care
This presentation is the property of its rightful owner.
Sponsored Links
1 / 10

THE FINANCIAL STABILITY BOARD: WHY SHOULD CSOs CARE ? PowerPoint PPT Presentation


  • 80 Views
  • Uploaded on
  • Presentation posted in: General

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 ?

Download Presentation

THE FINANCIAL STABILITY BOARD: WHY SHOULD CSOs CARE ?

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


The financial stability board why should csos care

THE FINANCIAL STABILITY BOARD: WHY SHOULD CSOs CARE ?

Matthew Martin, Development Finance International

Washington, 15 April 2011


Structure of presentation

STRUCTURE OF PRESENTATION

  • What is FSB and how does it work ?

  • What are its subsidiary bodies and who does what ?

  • Why should CSOs care ?

  • Suggestions on Ways Forward


What is the fsb

WHAT IS THE FSB?

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

3


Formal fsb structure

FORMAL FSB STRUCTURE

  • Key Actors:

    • Chair of FSB Mario Draghi (Bank of Italy)

    • Secretariat of >20 people (Sec-Gen Sven Andriessen) in Basel

    • Plenary meeting of all members - decisionmaking 2x pa

    • Operates through committees and working groups on key issues, made up of only some members

  • FSB reports to G20, most work from G20 mandates to deliver for future meetings, on some issues via Finance Ministers/CB Governors, on others direct to summit

  • No (?) engagement with UN (even IMF and WB do) – supposed to bring developing country views ?

  • Does not report to or engage with Development Working Group (issues deliberately separated even though FSB decisions affect all countries)

4


Organigram

ORGANIGRAM

5


How does it operate

HOW DOES IT OPERATE ?

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

6


Key fsb subsidiaries

KEY FSB SUBSIDIARIES

  • International Accounting Standards Board (IASB)

    • accounting standards

  • International Organisation of Securities Commissions (IOSCO)

    • securities market transactions - shares, bonds, derivatives

  • Bank for International Settlements (BIS) – Basel Committee on Banking Supervision (BCBS)

    • regulation of banks

  • Also IAIS - Insurance and IADI – Deposit Protection

  • Common features

    • often high presence of private sector;

    • no openness to wider civil society or media;

    • little or no presence of poorer countries (except BCBS)

7


Why should we care 1

WHY SHOULD WE CARE (1) ?

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

8


Why should we care 2

WHY SHOULD WE CARE ? (2)

It covers key issues:

  • IASB

    • accounting standards crucial to tax accounting/evasion, transfer pricing etc – vital links to tax haven and tax justice campaigns

    • Bill Black – regulation will achieve nothing unless transparent accounts – poor accounting caused Iceland, financial crisis, Enron

  • IOSCO

    • derivatives and commodity trades and shares/bonds – vital to food and fuel price speculation and price trends

    • efforts to put all derivatives including commodities on markets – could dramaticlly increase regulation of speculation

  • BCBS

    • correct design of regulation to avoid future financial crises ?

    • application of regulations in developing countries can have major effects on availability of bank lending, including on microfinance and financial inclusion efforts

9


Conclusion next steps

CONCLUSION/NEXT STEPS

  • Definitely not « Mostly Harmless » (Donnelly)

  • Perceived as such by G8 governments because they mainly determine global regulatory standards, and also by private actors because regulations havent bitten much

  • But crucial to key development issues which affect the world’s poor citizens and on which CSOs focus campaigns

  • Need for network to

    • Open up the FSB – reform governance (Brookings Commission); increase LIC membership; accountability and transparency

    • Advocate/share info/coordinate on specific issues

  • Reminds me of debt relief 15 years ago – Jubilee decided early needed to engage with institutions like Paris Club and boring technicalities like cutoff dates - one of the key reasons why >$100 billion cancelled !

10


  • Login