4 Then, I’ll zero in on two reform areas that need more work: global banks that are “too big to fail” and over-thecounter (OTC) derivatives markets. Finally, I’ll say a few words about a third policy issue that is critical for supporting financial integration—cross-border payments.
Reforming the financial system Led by the G-20, the FSB and the international standard-setters are developing and monitoring the implementation of the required regulatory standards. 5 Their successful reform efforts have helped rebuild trust in financial integration that was severely damaged by the crisis. A significant accomplishment is the Basel III framework, which has made global banks much stronger and more resilient.