The new surveillance framework will support the comprehensive, methodical and disciplined review of vulnerabilities, helping to identify and address new and emerging risks to financial stability.
The framework aims to identify vulnerabilities in a proactive and forward-looking manner. It provides a global, cross-border, and cross-sectoral perspective on current vulnerabilities that draws on the collective perspective of the FSB’s broad membership.
The framework embodies four key principles:
- focus on vulnerabilities that may have implications for global financial stability;
- scan vulnerabilities systematically and with a forward-looking perspective, while preserving flexibility;
- recognise differences among countries; and
- leverage the comparative advantages of the FSB while avoiding duplication of work.
The framework places particular emphasis on incorporating multiple perspectives in the assessment of both current and emerging vulnerabilities. It includes a common terminology and common taxonomy of vulnerabilities, which will aid shared understanding and consensus building amongst FSB members.
The FSB will regularly communicate its view on vulnerabilities through its Annual Reports.