Accounting irregularities at leading corporate entities are a stark reminder as to how much the absence of accurate, timely and comparable financial information can impede the effective working of markets. Auditors were the first ones to face a backlash and in some instances, their independence was even questioned. I cannot overlook the criticality of international standards in my remarks this morning.
After a series of national and regional crises (Mexico, Asia, Russia, ...) the IMF Board adopted in 2000 a Financial Sector Assessment Program. The Fund would at regular intervals (of 3 to 5 years) conduct an in depth evaluation of the vulnerabilities of a country’s financial sector and the adequacy of prudential regulation and surveillance.