International Cooperation to Address Financial Crisis
In November 2008, members of the G20 set an action plan that laid the foundation for reforming the international financial system. The key challenges that have been identified by national and international authorities include restoring global growth, combating trade and financial protectionism, strengthening and improving financial regulation and markets, and strengthening the governance of international financial institutions. International bodies such as the International Monetary Fund (IMF), the Financial Stability Board3(FSB), and the Bank for International Settlements (BIS) have been tasked with monitoring global progress in reforming and strengthening the international financial system.
MAS continues to support these international efforts under the umbrella of the IMF, FSB and BIS. We work closely with other central banks and prudential regulators by contributing to international discussions on near-term policy responses and medium-term reform agendas. We also exchange views and information on the latest developments in the international financial markets and systems, and are involved in setting and implementing recommendations on market reform.
As an active member of the FSB, and underscoring our commitment and contribution, MAS participated in the FSB Working Group on Compensation which drafted principles for sound compensation practices endorsed at
the G20 London Summit. The principles are intended to reduce incentives towards excessive risk-taking that may arise from the structure of compensation schemes within large financial institutions.