History of the Financial Stability Board goes back to international, large scale crises which occurred in 1990s. With gradually expansion of scope and influence area of the crises occurred in this period (Asia crisis between 1997-1998 etc.), minimizing risk of crisis contagion and global negative effects became great crucial, and in this context, a need arose for an international organization in terms of establishment and protection of the financial stability during crisis management and after it, just before the crisis happens.
For meeting this need, the Financial Stability Form (FSF) was established by the finance ministers and central banks of G-7 countries in 1999 as an international platform which is responsible for developing effective regulatory and supervisory policies that will contribute to the financial stability, by ensuring coordination and information sharing between the regulatory authorities in the financial markets, and the international financial institutions.
However, the Financial Stability Form was changed as the Financial Stability Board in April, 2009 with the resolution taken in G20 Leaders Summit in the direction of global changes occurred in the financial and commercial markets, technological developments and new needs.
With this transformation, scope of duty of the Financial Stability Board was expanded, and it was ensured that it obtained an effective and functional Board status in which comprehensive regulatory and supervisory policies were globally developed. Located in Basel, Switzerland, the FSB is an international supreme board that performs its operations under the Swiss Laws.