I put the highest priority on bankruptcy procedures because they provide the self-adjusting mechanisms that allow the private sector to continue to function even in a world in which financial crises are likely to occur. Various plans to improve international financial rules will emerge, but they must all, in my judgment, include a focus on national bankruptcy codes.
Similarly, accounting standards and private sector disclosure are important areas for improvement. Accounting standards provide the foundation for credible financial statements and other disclosures that are key means for communicating a company’s operating results and its overall health, as well as  BIS Review 25/1999  2  for making more transparent various operating activities.