IIF calls for more and coordinated policy action

03 October 2008

Systemic, internationally coordinated responses by the authorities are essential at this stage to stabilize financial markets, requiring large if temporary use of government funds, the IIF states and underlines the need for regulatory reform.

Systemic, internationally coordinated responses by the authorities are essential at this stage to stabilize financial markets, requiring large if temporary use of government funds, Charles Dallara, Managing Director of the IIF said and underlined the need for regulatory reform.

 

Gaps or weaknesses in the regulation of mortgage lending require immediate action, and reinvented techniques for supervision of large, complex and internationally active institutions may well be needed, the IIF states. The focus should be on more efficient and more globally coordinated supervision.

 

Mr. Dallara advocated the establishment of a new global regulatory coordinating body, “mandated to monitor and coordinate financial regulation and supervision on an internationally consistent and convergent basis, for systemically important firms. In that connection, the need for a globally consistent framework for insurance regulation also requires attention.”

 

Dallara outlined a package of immediate steps to stabilize markets which includes:

 

Press release

 


© IIF - Institute of International Finance