The Financial Stability Forum (FSF) concluded its latest meeting on Friday, with members again having discussed risks and vulnerabilities in the international financial system, and having reviewed ongoing work to strengthen financial system resilience.
A release from the forum indicated that members also met with a group of financial market participants to exchange views on developments in financial markets and institutions and to discuss private sector work underway to enhance financial system stability.
With particular regard to its ongoing work to “mitigate sources of vulnerability”, the FSF discussed progress towards international convergence in accounting standards, and the important role that financial accounting and reporting standards play in safeguarding financial stability. Members reviewed the implementation of standards and codes (initiative launched in 1999), and the recent reviews conducted by IMF and World Bank Executive Boards. Other ongoing work discussed included Finite Risk/Financial Reinsurance and Business Continuity.
**Offshore financial centres**
During the two-day meeting, Members heard updates on ongoing work by the IMF, IOSCO, and other bodies to promote improvements in offshore financial centres. The Forum looks forward to a report of the Forum’s OFC review group at its next meeting.
The next meeting of the Financial Stability Forum will be held in Sydney during March, 2006.
The Financial Stability Forum promotes international financial stability through information exchange and international co-operation in financial supervision and surveillance. It brings together on a regular basis national authorities responsible for financial stability in significant international financial centres, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts.
The FSF seeks to co-ordinate the efforts of these various bodies in order to promote international financial stability, improve the functioning of markets, and reduce systemic risk.