Financial Reform: What Must Be Done

Following the G-20’s renewed commitment in Toronto to a comprehensive reform agenda, policymakers must seize the moment to follow through with an ambitious set of plans to reform the global financial system. The IMF’s Financial Counsellor, José Viñals, says action must be taken soon in five key areas: (1) the micro -prudential and macro-prudential dimensions of financial reform, (2) regulation of nonbank financial institutions, (3) core rules governing capital and liquidity levels, (4) consistency of national and international regulations, and (5) reform of supervision.