The Financial Stability Board as the new guardian of financial stability
The Financial Stability Board (FSB) represents the most important institutional innovation in the global economic governance architecture that has emerged in response to the global financial crisis of 2008–2009. This chapter provides a historical overview of the FSB, starting from the emerging market crises of the late 1990s to the first significant revision of its Charter in 2012. It explores the expansion in the tasks performed by the FSB over this period. This analysis will illustrate an evolution in the role of the FSB from being primarily a co-ordination mechanism to an institution capable of exercising a greater independent impact over global economic governance. The chapter examines different measures introduced since the beginning of the crisis to strengthen the institutional bases of the FSB in support of its growing set of tasks. It discusses how the FSB has evolved from a narrow club to a more inclusive organization, and how it interacts with non-member countries.