IMF Proposes ‘Naming and Shaming’ on Systemic Risks (Update1)
Bloomberg.comBy Sandrine Rastello
May 15 (Bloomberg) — The International Monetary Fund will identify and name countries that aren’t doing enough to prevent financial and economic imbalances in an effort to detect systemic risks, Director General Dominique Strauss-Kahn said.
“We are developing, with the Financial Stability Board, a vulnerability exercise covering both advanced and emerging- market countries,” Strauss-Kahn said today in Vienna, according to the text of his speech. “These new early warnings must be tough and not shy sway from ‘naming and shaming’ where appropriate.”
Banks and financial institutions have reported more than $1.4 trillion in credit losses and writedowns worldwide since the crisis began. Many of those losses stemmed from mortgage- related investments.
Strauss-Kahn said the measure is part of an effort to better coordinate financial-sector supervision, adding that policy makers’ attempts to harmonize fiscal and monetary policies have proven successful.
“Countries have made great progress in taking a common approach to monetary and fiscal policy, as they search for solutions to this global crisis, but less so in financial-sector regulation and supervision,” Strauss-Kahn said.
IMF Proposes Naming and Shaming on Systemic Risks (Update1) – Bloomberg.com.
