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Press ReleasesProgress in Transparency of the Financial Stability Board
Progress in Transparency of the Financial Stability Board
NGO applauds the release of information from the Financial Stability Board, but calls for greater transparency and inclusion
JUNE 8, 2012
Washington, DC – For the first time, the Financial Stability Board (FSB) released information in advance regarding the time and location of its Plenary Meeting. The FSB was established by the G20 in 2009 to coordinate, develop and promote implementation of global financial regulations that increase financial stability. On May 22, 2012, the FSB released a “press alert” for their Hong Kong Plenary Meeting on May 30, 2012.
Except for this recent press alert, the FSB has never announced the time, location or agenda of its Plenary Meetings, despite calls from developing countries and civil society organizations. The recent release of information prior the Hong Kong Plenary Meeting is encouraging for some non-governmental organizations (NGOs), like New Rules for Global Finance[1]. Its executive director, Jo Marie Griesgraber, stated, “We applaud the FSB’s decision to release this information and hope that it becomes a trend, but we are cautiously optimistic. We hope the FSB continues to release this type of information, but it has yet to make any progress in the transparency and inclusion of its Working Groups or Regional Consultative Groups.”
The FSB does not release any information in advance for its Working Groups or Regional Consultative Group (RCG) meetings which are intended to be inclusive mechanisms for all stakeholders, particularly developing countries. And coordinating with low-income countries (LICs) is vital to financial stability, according to the International Monetary Fund (IMF). In their Vulnerability Exercise of LICs paper, the IMF notes that, “Compared to other countries, LICs are particularly vulnerable” and that “volatility in LICs is an important impediment to sustained growth and development.” Yet LICs continue to be excluded from both institutions’ decision making processes.
However, it is not just LICs that are being excluded. Any country that is not a member of the FSB[2] is effectively excluded by its limited transparency and opportunities for participation. Without greater transparency, participation from all stakeholders is unfeasible, as is fulfilling the FSB mission to coordinate global financial regulations. The spillover effects and interconnectedness of financial markets everywhere, both their opportunities and risks, are more evident than ever before. Coordination on financial regulation between all countries will be necessary to mitigate future crises. This is the task the G20 charged the FSB with in 2009 – and greater transparency and inclusion will be essential in achieving this task.
Contact: Nathan Coplin, New Rules for Global Finance
Telephone: 810-348-3165
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
[1] New Rules for Global Finance is an NGO that promotes financial and fiscal reforms that support just, inclusive and economically sustainable growth and development.
[2] FSB members include the G20 countries, plus the major financial centers of Hong Kong, the Netherlands, Singapore, Spain and Switzerland, as well as international organizations (like the IMF and World Bank) and standard setting bodies (like the Basel Committee)