International organisations at the G20
Financial Stability Board
Since the international banking and financial crisis of 2008 the G20 has stepped up its efforts to reform the international financial system. In 2009 it founded the Financial Stability Board (FSB) to stabilise international financial markets and increase regulation of banking activities and capital flows. At its 2010 Summit in Seoul, the G20 adopted a package of banking reforms that has become known as Basel III. Under the agreement, financial institutions are to hold more equity capital in order to be better equipped to withstand turbulences and crises on the markets.
The G20 then also began holding its annual summit meetings of heads of state and government to increase commitment to implementing decisions taken. However, the G20, which is an informal forum, is faced with the high degree of interconnectedness and complexity of the international financial markets. Its agreements only comprise declarations of intent. Given that these are not legally binding, it is thus always unclear following a G20 summit whether and how its members will together implement their joint declarations in national law or in the context of EU Directives. That is why Heribert Dieter, from the German Institute for International and Security Affairs, believes that financial market regulation cannot be expected to deliver "any important impetus as regards crisis prevention".
Financial Stability Board website