The Financial stability board: nature and role in the financial architecture under international law

Abstract

This thesis focuses on the Financial Stability Board (FSB), its nature and role in the financial architecture under international law. At the beginning it describes the passage from the Financial Stability Forum to the Financial Stability Board, the causes which determines the transformation, and the new features added to better fit the new needs emerged in the international scenario. In details it is formed to address the vulnerabilities in the international financial system, after the global crisis of 2008, based on the cooperation and the exchange of information between its members. It also it explains the main features such as the membership, legal bases, the governance, the mandate, and the work of the body. Secondly it examines the debate about the Financial Stability Board as an international organisation or not, the disposition of its law, and the consequences that involved the emanation of it. Then the Financial Stability Board is defined the fourth pillar of the architecture of global economic governance, alongside the International Monetary Fund (IMF), the World Bank, and the World Trade Organisation (WTO). This part analyses also the main features of the previous organisations and their relationships with the Financial Stability Board. Furthermore it studies the cooperation and the features of the G20 and the international standard setting bodies. The final section studies how the Financial Stability Board intervenes in order to face the financial crisis thought ad hoc proposals and recommendations to resilient the international stability. The concerns identified by the Financial Stability Board, as the responsible for the crisis, are different (such as the shadow banking, OTC derivatives, and so on). They affect the economic system in various ways: the risk that they involved or a lack of an appropriate regulation. The Financial Stability Board deals with its work to solve the financial turmoil that generates. Its work is a way in the new scenario to overcome the crisis using appropriate regulations and solutions, even if they are yet in an implementation phase. The progresses are concrete and the supervision of them are constant, but however the nonbindingness of the rules emanated underlines the necessity of an individual effort from the countries to adopt the proposals, and based the implementation on the transparency, exchange of information and cooperation at international level among the parties involved.