Key Standards for Sound Financial Systems

The standards under the 12 policy areas highlighted here have been designated by the FSB as key for sound financial systems and deserving of priority implementation depending on country circumstances. These standards are broadly accepted as representing minimum requirements for good practice that countries are encourages to meet or exceed.

The FSB applied the following criteria for determining the list of key standards for sound financial systems:

relevant and critical for a stable, robust, and well-functioning financial system (including in light of the lessons from the recent financial crisis), in order to impart a sense of prioritisation in implementation;
universal in their applicability, by covering areas that are important in nearly all jurisdictions;
flexible in implementation, by being general enough to take into account different country circumstances;
broadly endorsed - namely, that such standards should have been issued by an internationally recognised body in the relevant area in extensive consultation with relevant stakeholders. To satisfy this criterion, the standard should preferably undergo a public consultation process. This criterion would also be satisfied when the standard-setting body has wide representation, or when the standard has been endorsed by International Financial Institutions (IFIs), such as the IMF and the World Bank; and
assessable by national authorities or by third parties such as IFIs.

The list of key standards will be periodically reviewed and updated by the FSB in light of policy developments at the international level.

Area	Standard	Issuing Body

Macroeconomic Policy and Data Transparency
Monetary and financial policy transparency	Code of Good Practices on Transparency in Monetary and Financial Policies	IMF
Fiscal policy transparency	Code of Good Practices on Fiscal Transparency	IMF
Data dissemination	Special Data Dissemination Standard / General Data Dissemination System ¹	IMF
Financial Regulation and Supervision
Banking supervision	Core Principles for Effective Banking Supervision	BCBS
Securities regulation	Objectives and Principles of Securities Regulation	IOSCO
Insurance supervision	Insurance Core Principles	IAIS
Institutional and Market Infrastructure
Crisis resolution and deposit insurance ²	Core Principles for Effective Deposit Insurance Systems	BCBS/IADI
Insolvency	Insolvency and Creditor Rights ³	World Bank
Corporate governance	Principles of Corporate Governance	OECD
Accounting and Auditing	International Financial Reporting Standards (IFRS) International Standards on Auditing (ISA)	IASB IAASB
Payment, clearing and settlement	Principles for Financial Market Infrastructures	CPSS/IOSCO
Market integrity	FATF Recommendations on Combating Money Laundering and the Financing of Terrorism & Proliferation	FATF

Economies that have, or seek, access to international capital markets are encouraged to subscribe to the more stringent SDDS and all other economies are encouraged to adopt the GDDS.
The FSB supports the inclusion of one or more standards on resolution regimes under this policy area, and intends to make a selection once relevant policy development work is completed.
The World Bank, working with UNCITRAL and internationally recognized experts, has completed and implemented the ICR ROSC Assessment Methodology. The ICR ROSC Methodology is based on the current Creditor Rights and Insolvency Standard (ICR Standard), derived from the World Bank's Principles and Guidelines for Effective Insolvency and Creditor Rights Systems, and the recommendations included in the UNCITRAL's Legislative Guide on Insolvency Law.