International financial regulation reform needs to be agreed, report urges

29 June 2010

Global economies need to work together to ensure that confidence in the financial industries is rebuilt, the manager of the Bank for International Settlements (BIS) has urged.

Jaime Caruana made the comments following the organisation’s annual general meeting (AGM) and publication of its annual report.

He outlined three challenges to the current “fragile economic and financial environment” which need to be tackled to ensure the long-term success of the international recovery.

Concerns include reducing the deficits in more advanced economies, making “behavioural changes” within the financial industry and finalising global agreements surrounding regulatory reform.

Mr Caruana explained: “Early effective action to meet these three challenges would strengthen confidence and help put the financial crisis behind us.

"Fiscal consolidation in several countries, the plan to publish stress tests for European banks and the support of the G20 for the regulatory reform agenda are all important steps forward.”

The AGM was held in Basel in Switzerland with Ben Bernanke, chairman of US Federal Reserve and Jean-Claude Trichet, president of the European Central Bank among the board members in attendance.

By Jim Ottewill

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