Front Matter Page
INTERNATIONAL MONETARY FUND THE WORLD BANK
2011 Review of the Standards and Codes Initiative—Background Paper
Prepared by the Staffs of the International Monetary Fund and World Bank Approved by Reza Moghadam (IMF) and Janamitra Devan (World Bank)
February 16, 2011
Contents
I. Overview
II. Developments in the Standards and Codes Since the 2005 Review
A. Policy Transparency
B. Financial Sector Standards
C. Market Integrity Standards
D. Other Standards Outside the Initiative
III. Progress in the Implementation of the 2005 Recommendations
A. Introduction
B. Assessing Implementation of 2005–06 Recommendations
IV. The Role of Standards and Codes in the 2007–08 Crisis: Looking at the Empirical Evidence
A. Introduction
B. Literature Review
C. Data and Econometrics
D. Caveats
E. Empirical Results
V. Standards Assessments and the Global Crisis: Summary of Case Studies
VI. Views of the Stakeholders on the Initiative: Results from the Surveys
A. Summary
B. Country Authorities
C. Fund Area Department Chiefs
D. Functional Department Mission Chiefs
E. Standards Assessors
F. Market Participants
VII. Summary of Bilateral Meetings with Major Stakeholders
A. Standard Setters and the FSB
B. Country Authorities
C. Market Participants
Tables
1. Completion of New ROSCs (January 1, 2006 – July 30, 2010)
2. Effect of Adherence to Basel Core Principles on the FSI
3. Effect of Adherence to Objectives and Principles for Securities Regulation
4. Effect of Adherence to Insurance Core Principles on the FSI
5. Effect of Adherence to Corporate Governance Standards on the FSI
6. Usefulness of the Initiative: Country Authorities Answers to the Survey
7. Usefulness of Standards as a Diagnostic Tool
8. Quality of Assessments, Overview
9. Quality of Assessments, by Income Level
10. Country Authorities’ Suggestions for New Standards
11. Usefulness of Standards, Ratings of Mission Chiefs
12. Usefulness of the Initiative: Ratings of Mission Chiefs Department
13. Usefulness of Standards, Ratings of Standards Assessors
14. Integration of Assessments into Country Work
15. Quality of Interactions During the Assessment Process
16. Satisfaction with Assessment Process
Figures
1. ROSC Country Coverage and Prioritization
2. Share of Staff Reports Containing Staff’s Views on the Priority Areas for Standards Assessments
3. Authorities’ Assessments on Level of Detail and Prioritization of Key Messages
4. Real GDP Growth during the Crisis
5. Region of Origin of Country Authorities Survey Respondents
6. Overall Usefulness of the Initiative
7. Relative Usefulness of ROSCs
8. Usefulness of the Initiative in Identifying Vulnerabilities
9. Which is more Useful?
10. Should ROSC participation be mandatory
11. Overall Usefulness
12. The usefulness of the initiative
13. Usefulness of FSAP related documents
Appendix I – Standards and Codes Mission Participants
List of Acronyms
| AFR |
African Department |
| AML/CFT |
Anti-Money Laundering and Combating the Financing of Terrorism |
| APD |
Asia and Pacific Department |
| ARC |
Advance Release Calendar |
| BCBS |
Basel Committee on Banking Supervision |
| BCEAO |
Central Bank of West African States |
| BCP |
Core Principles for Effective Banking Supervision |
| CCP |
Central Counter Party |
| CMU |
Country Management Unit |
| CPSS |
Committee on Payments and Settlements Systems |
| DAR |
Detailed Assessment Report |
| DQAF |
Data Quality Assessment Framework |
| FIRST |
Financial Sector Reform and Strengthening |
| EITI |
Extractive Industries Transparency Initiative |
| EU |
European Union |
| EUR |
European Department |
| FAD |
Fiscal Affairs Department |
| FATF |
Financial Action Task Force |
| FSAP |
Financial Sector Assessment Program |
| FSB |
Financial Stability Board |
| FSF |
Financial Stability Forum |
| FSI |
Financial Stress Index |
| GAAP |
General Accepted Accounting Principles |
| GDDS |
General Data Dissemination System |
| HKMA |
Hong Kong Monetary Authority |
| IAASB |
International Auditing and Assurances Standards Board |
| IAIS |
International Association of Insurance Supervisors |
| ICP |
Insurance Core Principle |
| ICR |
Insolvency and Creditor Rights |
| IEO |
Independent Evaluation Office |
| IFAC |
International Federation of Accountants |
| IFRS |
International Financial Reporting Standards |
| IIP |
International Investment Position |
| IOSCO |
International Organization of Securities Commissions |
| ISA |
International Standards on Auditing |
| ISP |
Insurance Supervisory Principles |
| ISQC |
International Standard on Quality Control |
| LEG |
Legal Department |
| LIC |
Low-Income Country |
| MCD |
Middle East and Central Asia Department |
| MCM |
Monetary and Capital Markets Department |
| MFPT |
Code of Good Practices on Transparency in Monetary and Financial Policies |
| NBP |
National Bank of Pakistan |
| NCJ |
Non-Cooperative Jurisdictions |
| NPO |
Non-Profit Organization |
| NSDP |
National Summary Data Page |
| OECD |
Organization for Economic Cooperation and Development |
| OTC |
Over-the-Counter Derivative |
| PCG |
OECD’s Principles of Corporate Governance |
| RAP |
Resource Allocation Plan |
| RBI |
Reserve Bank of India |
| ROSC |
Report on Observance of Standards and Codes |
| RSSS |
Recommendation for Securities Settlement Systems |
| SCI |
Standards and Codes Initiative |
| SCSI |
Standing Committee on Standards Implementation |
| SDDS |
Special Data Dissemination Standard |
| SIFI |
Systemically Important Financial Institution |
| SME |
Small- and Medium-sized Entities |
| SBP |
State Bank of Pakistan |
| SIV |
Structured Investment Vehicle |
| SPR |
Strategy, Policy, and Review Department |
| STA |
Statistics Department |
| TA |
Technical Assistance |
| WEO |
World Economic Outlook |
| WHD |
Western Hemisphere Department |