The Financial Stability Board (FSB) is a forum for cooperation among public authorities responsible for financial regulation and supervision worldwide. It develops common approaches to financial-sector policy and promotes their adoption across national markets. The FSB has no direct regulatory power over domestic institutions; its function is to support coordination between jurisdictions and to encourage broadly consistent supervisory and regulatory practices. By reducing differences in the application of financial rules, it seeks to limit regulatory fragmentation and maintain comparable conditions across countries and parts of the financial system.
Source: European Central Bank (ECB) (source). This glossary entry is an independently worded adaptation of the cited information.