At the London Summit, the leaders addressed the issue of coordination and oversight of the international financial system by establishing a new Financial Stability Board (FSB) with a strengthened mandate as a successor to the Financial Stability Forum
with membership to include all G-20 countries, Financial Stability Forum
members, Spain, and the European Commission.
Department of the Treasury, "Financial Regulatory Reform: A New Foundation," calls for improvements in the areas of fair value accounting, accounting for financial instruments, and loan loss provisioning (see also "Report of the Financial Stability Forum
on Addressing Procyclicality in the Financial System," April 2009).
LONDON - China, India, Brazil and nine other countries will join the Financial Stability Forum
, which now comprises financial authorities from the Group of Seven industrial and some other nations, the FSF said Thursday.
Increased collaboration between the IMF and the expanded Financial Stability Forum
will be particularly important to develop a timely and reliable assessment of macro-financial risks.
To strengthen the role and effectiveness of the IMF, the Bank for International Settlements, and the Financial Stability Forum
, two broad issues need to be addressed: legitimacy and focus.
The managing director of the IMF, the president of the World Bank, the chairman of the Financial Stability Forum
, and the United Nations secretary-general discussed the steps their organisations are taking to address the global financial crisis.
The International Accounting Standards Board is focusing on the recommendations of the Financial Stability Forum
, which included:
Sir David Tweedie, chairman of the International Accounting Standards Board, will discuss the main issues while Gerald Edwards, senior adviser on accounting and auditing policy at the Bank of International Settlements and a member of the Financial Stability Forum
, will report on efforts to ensure better valuation standards.
A spokesman for the IMF said, 'Our priorities are two-fold - pushing other countries to take a comprehensive approach to tackling the financial crisis and strengthening international supervision, and more co-ordination between Financial Stability Forum
and the IMF.
The Financial Stability Forum
(FSF) is an independent body housed within BIS.
The G7 also approved a Financial Stability Forum
(FSF) report on ways to prevent a repetition of the financial crisis and had identified several recommendations for implementation "within the next 100 days.
The BIS yesterday said that the Joint Forum of international bank supervisors, securities commissions and insurance supervisors had told the March meeting of the Financial Stability Forum
that investors, banks and securities firms had not understood the risk in such instruments.