Hosted and funded by the Bank for International Settlements, the board is based in Basel, Switzerland,[1] and is established as a not-for-profit association under Swiss law.

Unlike some other multilateral financial institutions, the FSB lacks a treaty basis and formal power, and relies instead on an informal and nonbinding memorandum of understanding for cooperation adopted by its members.

The report identifies key weaknesses underlying current financial turmoil, and recommends actions to improve market and institutional resilience.

[11] Lombardi published the panel's final report in September 2011 as a Brookings Issue Paper, concluding that the FSB's governance had not evolved as quickly as its prominence.

[12] In its 2012 report to the G20 Los Cabos summit, the FSB set out concrete steps to strengthen the organization's capacity, resources, and governance as well as establish it on an enduring organizational footing.

[14] In late July 2016, after the world markets had faced a number of crises, including terrorism and the UK's decision to leave the European Union, Carney sent a letter to Finance Ministers attending the G20 Summit and to Central Bank Governors outlining the reforms the FSB had made[15] indicating that the global economy and financial system had "continued to function effectively" and had "weathered" the "spikes in uncertainty and risk aversion", confirming that "this resilience in the face of stress demonstrates the enduring benefits of G20 post-crisis reforms".

He expressed confidence in the FSB's strategies, stating that "resilience in the face of stress demonstrates the enduring benefits of G20 post-crisis reforms".