Participants emphasized the need to supplement liquidity and capital support with measures that address the overhang of distressed assets as well as through fiscal stimulus packages to boost domestic demand.
Participants exchanged views on current conditions in financial markets and emphasized the need to supplement liquidity and capital support with measures that address the overhang of distressed assets as well as through fiscal stimulus packages to boost domestic demand.
Financial systems in the Asia-Pacific region have been broadly resilient to the crisis. However, the financial turmoil and the global economic slowdown have affected capital flows, export demand and financing availability. In this context, it is essential that credit flows to the economy be maintained, the FSF notes.
Concerning authorities’ responses, participants highlighted the benefits of a broadly co-ordinated approach to the design and implementation of policy responses including exit strategies.
They discussed progress with enhancing financial reporting and transparency, strengthening the Basel II capital framework, addressing pro-cyclicality, and regulating and overseeing credit rating agencies. Participants also discussed reform agendas in national regulatory systems and options for reinforcing international co-operation, including through supervisory colleges and co-operation in crisis management, as well as efforts to promote integrity in financial markets.
Press release
© Financial Stability Forum
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