The primary objective of this exercise is to encourage further improvements in disclosure so as to ensure that market participants have an adequate basis for an appreciation of the risks they are running in dealing with, investing in or lending to, financial institutions.
The second CGFS initiative is to examine what kind of aggregate information about exposures would help to improve the functioning of markets, taking as a starting-point the BIS international banking statistics. Having adequate knowledge about short-term capital flows is one thing. Establishing an exchange regime to minimise their disruptive effects, while maintaining their longer-run efficiency benefits, is quite another.