They will survive because, when prudently applied and sufficiently monitored in terms of their impact on financial stability, financial innovations generally tend to make a financial system more efficient without necessarily increasing its fragility. 1  I would like to thank Florian Heider, Manfred Kremer and David Marqués Ibañez for their valuable input.
The FSF brings together senior representatives of national financial authorities (for example, central banks, supervisory authorities and treasury departments), international financial institutions (such as the IMF or the BIS), international regulatory and supervisory groupings (for example, Basel Committee on Banking Supervision, International Accounting Standard Board), committees of central bank experts (such as the Committee on the Global Financial System) and the European Central Bank.