IMF has published its views on why the financial crisis happened and the weaknesses in the financial regulatory system that meant risks were not spotted. It urges:  

  • extension of the regulatory perimeter to catch all activities that pose economy-wide risks; 
  • strengthening market discipline, including relying less on credit ratings to meet prudential requirements;  
  • minimising procyclicality in regulation and accounting;  
  • filling information gaps; and  
  • stronger systemic liquidity provision frameworks within central banks.