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Fundamental reform of the financial system and its regulation is needed to address the issues highlighted by the current financial markets crisis, according to the OECD Financial Markets Committee.
The current regulatory framework is outdated and reflects the “simple” world before globalisation CMF chair Thomas Wieser, from the Austrian Ministry of Finance noted.
“It will no longer be possible to assert the view that we have the best of all possible financial systems”, Adrian Blundell-Wignall, deputy director at the Directorate for Financial and Entreprise Affairs said.
The Committee held an extra-plenary session with private market participants to discuss the financial turbulence. There was a widespread view among private market participants that the outlook for financial markets and stability remained uncertain, and they estimated that the time for financial markets to recover would take 12 to 18 months.
OECD report: The subprime crisis: size, deleveraging and some policy options