In May 2012, the decision was reached to amend the CMIM agreement in order to (1) double the size of the CMIM from 120 billion to 240 billion U.S. dollars, (2) introduce a crisis prevention facility of the Precautionary Line, and (3) minimize the IMF-linked portion from 80 percent to 70 percent (and further to 60 percent in 2014 upon the review of certain conditions).
The issues relate to (a) licensing policy for foreign banks; (b) monitoring the local establishments of large international banks; (c) sheer variety and complexity of new financial products including derivatives; (d) familiarisation and understanding of when and to what extent the overseas parent banking organisations will support their cross-border operations in times of difficulties or crises; (e) managing systemic risks associated with cross-border banking; (f) the complications arising from the organisational positioning of the foreign banks that are not necessarily stand-alone institutions but are rather part of a holding company group, and the complexity of financial institutions active in a number of jurisdictions; and (g) possibility of increased operational risks due to integrated operations of consolidated financial institutions.