FINANCIAL STABILITY BOARD AS SUCCESSOR AND DEVELOPMENT OF FINANCIAL STABILITY FORUM
The article looks at the history of Financial Stability Forum and the creation of its successor the Financial Stability Board. The formation of the Forum was a reaction to the crises in South East Asia and Russia in the 1990s. The Forum undertook a number of initiatives to promote the implementation of the existing body of standards and rules. The Forum defined 12 key standards deemed as necessary to establish sound financial systems. The assessment of the Forum’s activities has been mixed as they had failed to prevent the crisis that originated in the developed rather than the developing countries in the second half of the first decade of the XXI century, which necessitated a rethink of the financial stability notion and the creation of a new international body. Reorganization of the Forum and the creation of the Financial Stability Board with a wider representation of countries were favourably received by scholars and officials. However, with the Board retaining many features of the Forum, its efficacy in some doubt.