The CPSS and IOSCO issued a consultative report entitled “Principles for financial market infrastructures” last March and their guidance is expected to be finalised in early 2012. Another important initiative relates to the enhanced oversight of Credit Rating Agencies (CRA’s) and the need to reduce the mechanistic reliance on external ratings.
We praise management for the role the World Bank Group (W BG) is playing in this regard, having quickly conveyed substantial resources to help the poorest and the most vulnerable, supporting the health sector, and providing liquidity to the business sector in low-income countries. Even more than in other episodes of widespread crisis, the W BG must provide countercyclical support while promoting long-term growth.