The head of a group tasked with global financing reform says the world’s financial system has recovered strength significantly but is not yet out of the woods.

“We are more or less back at what we were before Lehman, but we are not back to before the crisis,” Financial Stability Board chair and Italian central bank chief Mario Draghi said on Saturday.

He was referring to the sudden collapse of US banking giant Lehman Brothers last September, which plunged financial markets and the banking and credit system into turmoil.

“An improvement yes, out of the woods, not yet,” he added after the FSB’s inaugural meeting.

Draghi pointed to two “positive signs”: the way US banks in particular have managed to raise $US10 billion ($A12.44 billion) in private capital recently, and the strength of corporate bond issuance.

However, Draghi also highlighted the unfinished restructuring of banks and the fragile credit channels among the “uncertainties”.

The FSB is part of a broadened and strengthened Financial Stability Forum, including central banks, the IMF, World Bank, national regulators and governments, tasked with permanent oversight of the financial system.

It is now expanded to those from the Group of 20 major stgeloped and stgeloping countries, as well as Spain, Switzerland, the European Commission and other countries.

The G20 agreed in April in London that the FSB should look at new rules for ensuring stability in the global financial system to avoid a repeat of the crisis.