The BIS recently set up the Institute for Financial Stability in order to train expert staff, and the committees of the G-10 central bank governors, which mostly meet in Basle, have now intensified their cooperation with the representatives of the emerging economies. In addition, the IMF should take account of the recent experience and specific conditions of countries when making its policy recommendations.
Even well-capitalised financial institutions experienced liquidity problems and central banks needed to intervene, including with unconventional measures, to provide large scale financing and thereby prevent further escalation. Therefore the new liquidity requirements, introduced as part of the Basel III framework, are of utmost importance.