Criteria for Inclusion of Standards in the Compendium It is critical that economies have in place an effective legal framework and infrastructure for enforcement. Successful implementation of standards involves a process of interpretation, application, assessment and, enforcement. Their implementation must fit into a country’s overall strategy for economic and financial sector development, taking account of its stage of development, level of institutional capacity, and other domestic factors. The relative importance of different standards to individual economies depends on their financial structure and other domestic circumstances. They need to be regularly reviewed in order to remain relevant in the face of changing circumstances. Standards are not an end in themselves but a means for promoting sound financial systems and sustained economic growth. Promote international financial stability by facilitating better-informed lending and investment decisions, improving market integrity, and reducing the risks of financial distress and contagion. Strengthen domestic financial systems by encouraging sound regulation and supervision, greater transparency, and more efficient and robust institutions, markets, and infrastructure and The development, adoption, and successful implementation of international standards yields both national and international benefits. While a broad range of political, social, legal and institutional factors affect financial stability, the focus of the FSB is on economic and financial standards which are generally accepted by the international community as important for sound financial systems. The development and implementation of internationally accepted economic, financial and statistical standards can help promote sound domestic financial systems and international financial stability. Guidelines These provide detailed guidance on steps to be taken or requirements to be met in a particular area. Practices These are more specific and spell out the practical application of the principles (drawing on country experiences) within a more narrowly defined context. Principles are usually set out in a general way to suit country circumstances. Principles These are fundamental tenets pertaining to a broad policy area. Sectoral These cover the economic and institutional sectors such as governments and central banks banking, securities and insurance industries and the corporate sector.įunctional Within each sector, standards cover areas such as governance, accounting, disclosure and transparency, capital adequacy, regulation and supervision, information sharing, risk management, payment and settlement, business ethics, etc.įrom an implementation perspective, standards also differ in their specificity: Standards may be classified by their scope: Standards set out what are widely accepted as good principles, practices, or guidelines in a given area.
The Compendium is reviewed and updated periodically.
It was first developed in 1999 by the Financial Stability Forum, the predecessor to the FSB. The Compendium is an initiative of the FSB and is a joint product with relevant international standard-setting bodies. The Compendium includes both key standards which the FSB has designated as deserving of priority implementation depending on country circumstances, and other standards that are complementary in nature and cover particular functional areas. The attaches much importance to the adoption and implementation of these standards because of their beneficial effects on the stability of financial systems both at national level and globally. The Compendium of Standards lists the various economic and financial standards - by both subject area and issuing body - that are internationally accepted as important for sound, stable and well functioning financial systems.
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