Moreover, the International Accounting Standards Board (IASB) and other relevant standard-setters should take urgent action to improve the accounting and disclosure standards for off-balance sheet entities and to enhance guidance on fair value accounting, particularly on valuing financial instruments in periods of stress.
What is also relevant is that financial institutions should strengthen their risk management practices, including rigorous stress testing, under the support of supervisors’ oversight. Finally, by mid-2008, the Basel Committee on Banking Supervision (“Basel Committee”) should issue revised liquidity risk management guidelines and the International Organisation of Securities Commissions should revise its code of conduct for credit rating agencies.