China attends first FSB meeting in Switzerland

FSB passes Articles of Association and the Procedural Guidelines.

The Financial Stability Board recently held its inaugural meeting in Zurich as an association. It was also the first meeting of FSB this year. Some 70 senior officials from member economies and international institutions attended the meeting.

China was represented by Deputy Governor Yi Gang, Vice Minister Li Yong of the Ministry of Finance, and Vice Chairman Wang Zhaoxing of the China Banking Regulatory Commission.

FSB is an international body that monitors and makes recommendations about the global financial system. It was established after the 2009 G-20 London summit in April 2009. Its Board includes all G-20 major economies, the European Commission and members of the Financial Stability Forum.

China joined the FSB in May 2009 and since then the PBC, Ministry of Finance, China Banking Regulatory Commission, China Securities Regulatory Commission, the China Insurance Regulatory Commission have actively participated in FSB activities.

The Hong Kong Monetary Authority is also a member of the FSB due to its membership in the FSF that preceded the FSB.

The meeting marked its establishment of the FSB as an association and a major progress in its institutional reform that had lasted for a year. The meeting's agenda included vulnerabilities affecting the financial system; current financial reform, including latest development in OTC derivatives; resolving failing financial institutions; shadow banking; risk governance and accounting convergence reform and the focus and objective of financial sector reform in 2013.

Also discussed were a reform of financial benchmark setting; regulatory factors affecting long-term investment financing; and the progress of regional consultative groups.