The Financial Stability Board (FSB) is an international body that plays a vital role in monitoring and making recommendations regarding the global financial system. Its main objective is to promote international financial stability by coordinating efforts among national financial authorities and international standard-setting bodies. By encouraging the implementation of strong regulatory and supervisory policies across sectors and jurisdictions, the FSB aims to create a level playing field.

The FSB carries out its mandate through various means. It assesses vulnerabilities in the global financial system, identifies necessary regulatory actions, and monitors market developments. It also sets guidelines for supervisory colleges, supports cross-border crisis management planning, and conducts Early Warning Exercises with the International Monetary Fund (IMF).

Additionally, the FSB collaborates with member jurisdictions to ensure the implementation of agreed commitments and standards. The FSB's framework for identifying systemic risk and overseeing policy responses is structured around its Plenary, Steering Committee, and three Standing Committees. While the FSB's decisions are not legally binding, member jurisdictions commit to maintaining financial stability, implementing international standards, and undergoing periodic peer reviews.

Overall, the FSB's work is crucial in strengthening the stability and resilience of the international financial system