Volume II - PDF - International Association of Deposit Insurers

•BACKGROUND DOCUMENTS•
Part II: Outreach
Closing Remarks
Mr. Svein Andresen, head of the Secretariat of the
Financial Stability Forum (FSF), assisted by Mr.
Pierre Cailleteau, thanked the Chicago Fed for
hosting the conference and described the FSF’s
mandate and its activities in areas other than
deposit insurance. The FSF began when the G7
finance ministers asked Mr. Hans Teitmeyer, early in
1999, to look into three areas where improvement
to the international financial system was thought
desirable: (1) identifying and containing incipient
vulnerabilities, (2) setting international standards,
and (3) coordinating supervisory activities and
exchanges of information.
Mr. Andresen reported that the FSF had 41 members,
including regulators, central bankers and deputy
finance ministers from 11 countries—the G7,
Australia, Hong Kong, the Netherlands, and
Singapore, together with representatives from the
Bank for International Settlements, the Basel
Committee for Banking Supervision, OECD,
International Monetary Fund, World Bank,
the International Organization of Securities
Commissioners (IOSCO), and the International
Association of Insurance Systems (IAIS). The
Forum’s working groups had also included representatives
from a large number of emerging
market countries.
However, the Forum had identified important
gaps, including guidance on deposit insurance that
the WGDI would fill. The Forum was currently
also studying diminishing liquidity in the international
financial markets, winding down large and
complex institutions in multiple jurisdictions, and
supervisory challenges posed by the development
of “e-finance.” As with all issues taken up by the
Forum, these topics emphasized the interface
between micro and macro issues.
Mr. Hunter thanked the presenters and the audience
for participating in the conference and observed
that the event had provided an excellent opportunity
for the WGDI to exchange ideas with the academic
community. He congratulated the Working Group
on being willing to take on a challenging and complex
subject. He personally agreed with much that
had heard during the afternoon on, for example,
the importance of prompt corrective action, the
fact that deposit insurance was not a magic elixir,
and the need to make the Group’s recommendations
more concrete. In closing the conference he
called on the participants to continue the research
they had begun and the exchange of ideas that had
characterized the day.
Mr. Andresen noted that the FSF had met four
times and had already issued reports on highly
leveraged institutions, offshore activities, volatile
capital flows, and implementing standards. He
said that that there was a strategy to foster the
implementation of standards and codes and that a
large number of these standards and codes were
already posted on the FSF’s web site. 4
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Guidance for Developing Effective Deposit Insurance Systems: Volume II