Though the epicentre of the crisis lay in the sub-prime mortgage market in the US, it was transmitted rapidly throughout the globe, destabilizing financial markets and banking systems. The crisis eventually impacted the broader macro-economy, affecting economic growth and employment throughout the world. The magnitude of this crisis has clearly signaled the need for major overhaul of the global financial regulatory architecture.
The G-20 leaders have mandated the international regulatory agencies and standard-setters, including Basel Committee on Banking Supervision (BCBS), Financial Stability Board (FSB) and International Accounting Standards Board (IASB) to take active part in this process.