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Global Financial Stability Board (ECB)

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Recommended: 2008 financial crisis

The Global Financial Crisis has shown many weaknesses in the European financial system and as we have seen, there have been many regulatory changes and still will be in order to avoid a future crisis. For this purpose, the existing institutions before the crisis burst have carried out some actions such as the development of the Basel III Accord, among others, with the aim of strengthening the regulation and supervision of the banking sector. And throughout the crisis, new institutions have been created or have substituted others having among its objectives the prevention of a future crisis and a unification of the banking sector.
European Central Bank
The European Central Bank (ECB) has played a key role in the management of the financial …show more content…

It is an international body that oversees the global financial system as well as making recommendations.
Before getting into detail on the FSB we must know it’s background, that is, the FSF. The FSF was founded in 1999 by the G7 Finance Ministers and Central Bank Governors and its aim was to promote international financial stability. In November 2008, in response to the global financial crisis, a larger membership of the FSF was required by the G20 countries with the objective of implementing strong regulatory, supervisory and other policies to be able to achieve financial stability. So, on April 2009, the newly expanded FSF was established as the Financial Stability Board.
The FSB’s main role is to promote the reform of international financial regulation through an increase on the exchange of information and cooperation on financial supervision and surveillance.
The FSB is formed by the G20 countries plus four other financial centres – Hong Kong, Singapore, Spain and Switzerland. It also includes the European Central Bank (ECB) and the European Commission (EC) and it is directly related to the financial …show more content…

But some improvements can still be made by the ESRB in order to improve the efficiency of macro-prudential supervision, such as a more proactive communication strategy. The EC plans on examining the ESRB’s organisation in order to increase its autonomy as well as giving the ESRB more tools to be able to have an earlier intervention.
The European Securities and Market Authorities
The aim of the ESMA is to protect the stability and efficiency of the financial system. It supervises capital markets and credit rating agencies. ESMA was given the mission of providing protection to investors and promoting stable financial markets in the EU. It also plays an advisory role giving technical advice to the European Commission.
The European Banking Authority
Although the national authorities (and soon the ECB for those countries that will participate in the new sole supervising mechanism, main role of the so-called “banking union”) are still the ones in charge of supervising the different financial institutions, the EBA’s function is to improve the functioning of the domestic market ensuring an adequate supervision and regulation, and at the same time efficient to a European

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