FINANCIAL
STABILITY BOARD - INTERNATIONAL
News:
What are the FSB’s
concerns about crypto asset intermediaries? | Explained
What's
in the news?
●
The Financial Stability Board (FSB)
published a report addressing the regulation of multi-function crypto-asset
intermediaries (MCIs) and the need for enhanced cross-border cooperation.
Key
takeaways:
●
The report specifically mentions the FTX
collapse in November 2022, highlighting the risks associated with MCIs
combining various activities on their platforms.
Financial
Stability Board (FSB):
●
FSB is an international body that monitors and makes recommendations about
the global financial system.
●
It was established in April 2009 after the
G20 Summit in London as the
successor to the Financial Stability Forum.
Mandate:
●
To coordinate at the international level
the work of national financial authorities and international standard-setting
bodies and to develop and promote the implementation of effective regulatory,
supervisory, and other financial sector policies.
●
The FSB, working through its members,
seeks to strengthen financial systems and increase the stability of
international financial markets.
Headquarters:
Basel, Switzerland.
Members:
●
The board includes all G20 major economies.
●
The FSB consists of 68 member institutions.
●
It comprises several central banks,
ministries of finance and supervisory and regulatory authorities from 25 jurisdictions,
as well as 10 international organizations and six Regional Consultative Groups
(RCGs).
Framework:
●
The Plenary,
which serves as the sole decision-making
body.
●
The Steering
Committee, which takes forward operational work in between Plenary
meetings.
●
Three
Standing Committees, each with specific but complementary
responsibilities.
●
The FSB’s decisions are not legally
binding on its members.
India
and FSB:
●
India
is an active Member of the FSB, having three seats in its
Plenary represented by Secretary (Dept of Economic Affairs), Deputy
Governor-RBI, and Chairman-SEBI.