The Financial Stability Board (FSB) met in St Andrews on 23 October 2009. They assessed that global financial stability has improved since their last meeting, but significant challenges remain. The FSB discussed several key areas.

Key Discussion Points

Implementation of Standards

The FSB reviewed the implementation of international financial standards and policy measures. They emphasized the importance of full and consistent implementation across all jurisdictions.

Supervisory Intensity

Members agreed on the need for more intensive and effective supervision of financial institutions, including increased cross-border cooperation.

Compensation Practices

The FSB examined progress in reforming compensation practices to align them with long-term value creation and prudent risk-taking.

Systemically Important Financial Institutions (SIFIs)

Work continues on developing a framework for identifying and addressing risks posed by SIFIs, including cross-border resolution mechanisms.

Shadow Banking

The FSB is monitoring the shadow banking system and developing recommendations to address potential risks.

Macroprudential Frameworks

Discussions focused on developing effective macroprudential frameworks to mitigate systemic risks and prevent future crises.

Conclusion

The FSB concluded that continued policy action is essential to secure a sustained recovery and strengthen the financial sector. They will continue to monitor the situation closely and coordinate international efforts to address remaining vulnerabilities.