Group of Thirty (G30) – Financial Reform: a framework of financial stability

The Group of Thirty (G30) has published a report titled "Financial Reform: a framework of financial stability".
PDF file

This report may be an influential one. It may give a glimpse of what will happen in near future.

Take a look at who is inside current Group of Thirty (G30).
G30 list

Some important names of G30 members are in current US Obama "economic team":
Paul Volcker
Timothy F. Geithner
Larry Summers

Many central bankers, leaders in important organizations and financial companies are inside G30 too.

A summary of recommendations and its area. (Read the report for details)

Core Recommendation 1
Gaps and weaknesses in the coverage of prudential regulation and supervision must be eliminated.

1. Prudential Regulation and Supervision of Banking Organizations
2. Consolidated Supervision of Non-Bank Financial Institutions
3. Money Market Mutual Funds and Supervision
4. Oversight of Private Pools of Capital
5. Government-Sponsored Enterprises (GSEs)

Core Recommendation 2

The quality and effectiveness of prudential regulation and supervision must be improved.

6. Regulatory Structure
7. Role of the Central Bank
8. International Coordination

Core Recommendation 3
Institutional policies and standards must be strengthened, with particular emphasis on standards for governance, risk management, capital, and liquidity.

9. Regulatory Standards for Governance and Risk Management
10. Regulatory Capital Standards
11. Standards for Liquidity Risk Management
12. Fair Value Accounting

Core Recommendation 4

Financial markets and products must be made more transparent, with better aligned risk and prudential incentives. The infrastructure supporting such markets must be made much more robust and resistant to potential failures of even large financial institutions.

13. Restoring Confidence in Securitized Credit Markets
14. Rating Agency Reforms
15. The Oversight of Credit Default Swaps (CDS) and Over-the-Counter (OTC) Markets
16. A Resolution Mechanism for Financial Institutions
17. Improving Transparency of Structured Product Markets
18. Sharing Market Activity and Valuation Information

Some organizations, standards mentioned in the report, may worth exploring:
1. Counterparty Risk Management Policy Group (CRMPG)
2. Institute of International Finance
3. Basel Committee Principles

The proposal to re-regulate global finance is indeed drastic and all-encompassing !

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