Disclosure Regimes
The Bank of England has called the Credit Crisis an “extraordinary period” which will have “deep and long-lasting consequences” for the global capital markets. The United States Federal Reserve has said the “the sources of the crisis were extraordinarily complex and numerous,” but at the root was the Fed’s belief that banks’ “risk management systems were inadequate and their capital and equity buffers insufficient.”
IOSCO members wish to collect data and create risk profiles of hedge fund managers, in order to help assess systemic risk and “inform the relevant legislative debates.”
Liquidity, said the Central Bank of Luxembourg, must be monitored more closely and procyclical behavior must be mitigated more effectively. The Central Bank of Norway has suggested that requirements should be established stipulating the proportion of liquid assets that a bank must hold, as well as minimum requirements for funding stability.