First, improving transparency and enhancing valuation practices should be a top priority, as the lack of adequate, relevant and timely information about risk exposures, valuations of complex illiquid instruments, write-downs, and the ultimate holders of risk has contributed to the loss of confidence and has impaired market functioning.
Financial institutions are called upon to make full and immediate disclosure of on and off-balance-sheet risk exposures and losses, following the leading market practices as well as the guidance provided by supervisors and accounting standard-setters.