The CGFS, formerly known as the Euro-currency Standing Committee, was established in 1971 with a mandate to monitor international banking markets. Its initial focus was on the monetary policy implications of the rapid growth of offshore deposit and lending markets. Attention increasingly shifted to financial stability questions and to broader issues related to structural change in the financial system.
Reflecting this change in focus, the G10 Governors decided in February 1999 to rename the Committee and to revise its mandate. As of January 2010, the CGFS reports to the Global Economy Meeting.
The Global Economy Meeting decided to expand the membership of the CGFS to include central banks from Argentina, Russia, Saudi Arabia, South Africa, and Thailand, marking a step toward enhancing the global representation within the CGFS.
With the addition of these new members, the total number of central banks participating in the CGFS has risen to 28.
The CGFS approved key enhancements to the BIS international banking statistics in January 2012 to close important data gaps exposed by the financial crisis.
Following the global financial crisis, the CGFS established an ad-hoc group to review and enhance BIS International Banking Statistics as part of improving data for financial stability analysis.
As BIS governance evolved, from January 2010 the CGFS began reporting directly to the Global Economy Meeting, which comprises the Governors of 30 BIS member central banks in major advanced and emerging market economies.
In autumn 2000 the CGFS established a working group to examine modifications to BIS banking statistics, particularly to capture derivatives exposures, marking an early significant statistical initiative.
Reflecting the broadened focus beyond just euro-currency markets, the Euro-currency Standing Committee was renamed the Committee on the Global Financial System (CGFS).
The Governors of the G10 central banks also formally approved the CGFS’s mandate, outlining its objectives in assessing stress in financial markets, analysing financial systems, and promoting stable markets.
The Central Bank of Luxembourg and the European Central Bank join the ECSC/CGFS.
The Reserve Bank of Australia, Central Bank of Brazil, European Central Bank, Hong Kong Monetary Authority, Bank of Korea, Bank of Mexico, Monetary Authority of Singapore and Bank of Spain are also invited to attend regular 'enlarged' ECSC/CGFS meetings.
Governors entrust the ECSC with regular and systematic monitoring of international banking developments.
The CGFS was originally created as the Euro-currency Standing Committee by decision of the Governors of the BIS to monitor the rapid growth of offshore deposit and lending markets and their implications for monetary policy and financial stability.