Council Calls on the G20 to Enhance International Financial Regulatory Coordination
PARIS and CAMBRIDGE, Mass., April 14, 2011 /PRNewswire/ —
The Council on Global Financial Regulation (Council) today issued its initial report titled “Practical Measures for Enhancing International Financial Regulatory Coordination”. The Report calls on G20 governments and related financial regulatory authorities and international bodies to enhance the existing process of international financial regulatory coordination. Most particularly, the Council recommends new steps to bolster institutionally the coordinating capacity of the Financial Stability Board (FSB) commensurate with its mandates from the G20.
In the midst of the recent global financial crisis, the G20 issued an unprecedented challenge to member governments to enhance international coordination on financial regulation as essential to avoiding another major crisis. “Over the past two years, considerable progress has been made.
However, as the international financial system appears to have stabilized, the urgency behind earlier G20 pronouncements appears to have diminished. Yet, much remains to be accomplished,” said Hal Scott, Co-Chairman of the Council.
Michel Prada, Co-Chairman, emphasized that “This is the time for meaningful action to enhance the current coordination framework, particularly to support mechanisms that accelerate alignment of domestic regulatory policies around consensus international views. The Council encourages more pro-active work by existing international bodies. This should proceed consistent with the efficient functioning of the market, financial innovation and the requirements for growth and global prosperity.”
The Council endorses the central leadership role of the Financial Stability Board, as a working extension of the G20 and encourages the FSB to keep pace institutionally with the growing demands being placed on its agenda. The Council offers a number of recommendations with respect to mandate, institutional capacity and governance, as well as steps to promote adherence to international regulatory and supervisory standards. The Report is available on the Council’s website: http://www.c-gfr.org/cgfr-reports.
The Council was formed in 2010 with the objective of providing G20 government officials and regulators with independent views on issues relating to international financial regulatory coordination. The Council is composed of 15 private-sector individuals — representing 11 different nationalities — who are internationally respected in the field of financial regulation. Members have committed to act independently of any institutions with which they are or have been affiliated. The membership of the Council is posted on its website: http://www.c-gfr.org/members-list.
SOURCE: Council on Global Financial Regulation