Financial Stability Forum

The Financial Stability Forum is a group consisting of major national financial authorities such as finance ministries, central bankers, and international financial bodies. The Forum was founded in 1999 to promote international financial stability. Its founding resulted from discussions among Finance Ministers and Central Bank Governors of the G7 countries, and a study which they commissioned. [http://www.fsforum.org/about/genesis_of_the_fsf.html Genesis of the FSF] , FSF website.]

The Forum facilitates discussion and co-operation in supervision and surveillance of financial institutions, transactions and events. FSF is managed by a small secretariat housed at the Bank for International Settlements in Basel, Switzerland. [http://www.fsforum.org fsforum.org] , main website.] It is chaired by Mario Draghi, an Italian banker and economist who became the governor of the Bank of Italy in January 2006 for a six-year term.

The FSF membership includes about a dozen nations who participate through their central banks and financial ministries and departments, including: Japan, Canada, Germany, France, Italy, the United States, the United Kingdom, and many other industrialized economies. [ [http://www.fsforum.org/about/who_we_are.html FSF:Who we are] .] It also includes several international economic organizations. [http://www.bis.org/about/factfsf.htm FSF Factsheet] , BIS website. ]

Meetings and actions

The Financial Stability Forum (FSF) met in Rome on 28-29 March 2008 in connection with the Bank for International Settlements. Members discussed current challenges in financial markets, and various policy options to address them from this point forward. [http://www.bis.org/press/p080329.htm Financial Stability Forum meets in Rome] , 29 March 2008, Press release, Website of Bank for International Settlements]

At this meeting, the FSF discussed a report to be delivered to G7 Finance Ministers and Central Bank Governors in April 2008. it identifies key weaknesses underlying current financial turmoil, and recommends actions to improve market and institutional resilience. The FSF discussed work underway at the International Monetary Fund (IMF) and Organisation for Economic Co-operation and Development (OECD) with regard to sovereign wealth funds (SWFs). The IMF is working closely with SWFs to identify a set of voluntary best practice guidelines, and is focusing on the governance, institutional arrangements and transparency of SWFs.

On April 12, 2008 the FSF delivered a [http://www.fsforum.org/publications/FSF_Report_to_G7_11_April.pdf report] to the G7 Finance Ministers which details out its recommendations for enhancing the resilience of the financial markets and financial institutions. These are in five areas:
*Strengthened prudential oversight of capital, liquidity and risk management
* Enhancing transparency and valuation
* Changes in the role and uses of credit ratings
* Strengthening the authorities' responsiveness to risks
* Robust arrangements for dealing with stress in the financial system [http://www.bis.org/press/p080412.htm]

References

External links

* [http://www.fsforum.org fsforum.org] - main website
* [http://www.fsforum.org/publications/FSF_Report_to_G7_11_April.pdf April 2008 "Report of the Financial Stability Forum on Enhancing Market and Institutional Resilience"]
* [http://www.bis.org/search/?q=Financial+Stability+Forum+&scope=&mp=phrase&sndex=alike&dr=-1&pi=any&c=10&sb=1&adv=1&cb=0 List of FSF press releases] , at BIS website.