The Political Momentum Of The Fsb Evolution Research

As the inherited institution of the Financial Stability Forum（FSF）, theFinancial Stability Board （FSB）is established to coordinate at the internationallevel the work of national financial authorities an international standard settingbodies（SSBs） in order to develop and promote the implementation of effectiveregulatory, supervisory and other financial sector policies. The institutionaltransformation process from the Financial Stability Forum to the Financial StabilityBoard is a deepening institutional process including the strengthening of obligation,restriction and delegation.The obligation of the FSB is getting wider in three aspects. First, the FSB wasassigned a much stronger role in asking the members to promote compliance withinternational financial standards. Second, the FSB members are asked to undergo anassessment under the FSAP every five years and to publicize the detailed IMF/WBassessments used as a basis for the ROSCs. Third, FSB member have committed toundergo peer reviews. In addition, the restriction of the FSB is getting stronger intwo aspects. First, the FSB is promoting adherence to the non-cooperativejurisdictions （NCJs）. Second, the FSB is strengthening the supervision to themembers and non-member countries. Besides, the delegation of the FSB is alsogetting larger in two aspects. First, the FSB is strengthening the delegation ofcapacity, resources and management. Second, the FSB is also taking a more activerole in coordinating international standard setting bodies（SSBs）.In order to explain the transformation process from the Financial StabilityForum to the Financial Stability Board, the author adopts the logic of the result ofthe change in domestic politics within the United States and regards that the politicschanges of financial regulatory and supervision within the United States, especiallyin the field of the politicization of the financial regulatory and supervision issues,the ideational shift among elite policymakers and the support of interest groupspromoted the financial regulatory and supervision standards. In order to balance andkeep the leadership in international financial regulatory and supervision, the UnitedStated strengthened the international financial regulatory and supervision standards. Global financial crisis triggered a shift in domestic politics and the content ofinternational rules changed accordingly. The unprecedented politicization offinancial regulatory politics were thereafter triggered when US gover nment’spolicymakers decided to rescue financial institutions with large-scale use oftaxpayers money. Elite policymakers also shifted their ideas about the merits ofmarket discipline and self-regulation in light of lessons learned during the crisis.Many in the interest groups came to support regulation for improving thefunctioning of their industry.All these three factors triggered the changes of the domestic politics within theUnited States. At last, it strengthened international financial standards andtransformed the institutional from the Financial Stability Forum to the FinancialStability Board.