Abstract

Enhancing the capacity of financial systems to better cope with international capital flows requires specific policies and is central to strengthening the global financial architecture. National authorities play the key role in this area; and their work is being complemented by international institutions and groupings, including the IMF, the World Bank, the Basel Committee on Banking Supervision (BCBS), the Organization for Economic Cooperation and Development (OECD), the International Association of Insurance Supervisors (IAIS), the International Organization of Securities Commissions (IOSCO), and other standard-setting bodies in areas such as accounting.37 The Financial Stability Forum (FSF) has also addressed these issues. In its report on capital flows, it proposed an approach that emphasizes risk management, building institutional capacity, and improving data on external financial positions.38

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