IIF proposes eight-point reform programme to strengthen the global financial system

The Institute of International Finance (IIF) today proposed an eight-point integrated package of actions designed to forge a new partnership between the IMF, capital markets and countries in order to strengthen the global financial system. The IIF's proposals are highlighted in a letter on behalf of its board of directors by IIF MD Charles Dallara to UK chancellor of the exchequer Gordon Brown in his capacity as chairman of the International Monetary and Financial Committee (IMFC), which guides IMF policy.

Dallara addressed the need for new approaches by market participants and national authorities, as well as by the IMF. He noted that abundant liquidity in the markets has contributed to diminished market discipline, while providing fewer incentives for some authorities to reinforce policies or take tough reform decisions. He also noted that lending by the IMF has diminished and important questions have been raised recently regarding the role of the Fund in today's globalised environment. He