publication . Article . 2009

Reform of the global financial architecture: a new social contract between society and finance.

Banziger, H.;
Open Access
  • Published: 01 Jan 2009 Journal: Financial stability review, issue 13 September, pages 23-30
Abstract
The current global crisis poses significant challenges for our fi nancial system, our economies, and our societies. Overcoming these will require a new “social contract” between society and finance. This must include improvements to corporate governance, a reform of capital requirements, a more transparent and less procyclical accounting framework, banking laws to reflect modern financial markets, better infrastructure, and stronger supervision. Given the global nature of today’s capital markets, it will also require efforts to be coordinated, if not harmonised, internationally in order to avoid any re-fragmentation and re-nationalisation of the financial system...

1 The most important documents have been the Action Plan issued by the Financial Stability Forum (April 2008), the G20 communiqué (November 2008), the Larosière report (March 2009), and the Turner report (April 2009).

2 Amongst them the report of the IIF's Committee on Market Best Practices (July 2008), the third report of the Counterparty Risk Management Policy Group (August 2008), and the Group of Thirty report (January 2009).

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