Second, the current initiative represents a consolidated view of several interrelated standards and codes. The international standard-setting bodies have existed for a long time, but each body was developing common codes and rules in isolation. There are various international organizations, which over the years have made significant contribution to raising standards of soundness and riskawareness in financial systems.
After the Asian crisis, it was recognised that the world economy can be exposed to potential threat of contagion from problems in financial markets and so it became imperative to strengthen financial systems through intensified coordination and cooperation among national regulatory bodies, international regulatory bodies and international financial institutions charged with fostering standards and codes.