Global Financial Crisis: Role Of International Institutional Framework, And Lessons For Transitional Countries

Radislav Jovovic

Montenegrin Journal of Economics, 2012, vol. 8, issue 3, 65-73

Abstract: As the global financial system has become increasingly interconnected, the global institutional framework plays the important role in international financial system stability. The role of international institutions, first of all IMF have been criticized as being less than fully effective, too focused on bilateral issues, and not fully accounting for the risks of contagion that have been seen in the recent crisis. This paper discusses roles of international institutional framework in helping to avoid a future global financial crisis. The following appears to catch particular attention in this paper: a) How to improve Instituting a macro prudential approach to supervision and assigning a clear mandate to a systemic stability regulator; b) How to expand the perimeter of financial sector surveillance to ensure that the systemic risks posed by unregulated or less regulated financial sector segments are addressed; c) How to ensuring that prudential regimes encourage incentives that support systemic stability and discourage regulatory arbitrage, and assure effective enforcement of regulation. The author expects that this paper will catch attention for finding solutions for above cited questions. In this framework the author will try to draw up lessons of the financial crisis for developing future financial institution architecture, and to analyze impact on transitional countries.

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://repec.mnje.com/mje/2012/v08-n03/mje_2012_v08-n03-a15.pdf (application/pdf)
http://repec.mnje.com/mje/2012/v08-n03/mje_2012_v08-n03-a15.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mje:mjejnl:v:8:y:2012:i:3:p:65-73

Access Statistics for this article

Montenegrin Journal of Economics is currently edited by Veselin Draskovic

More articles in Montenegrin Journal of Economics from Economic Laboratory for Transition Research (ELIT)
Bibliographic data for series maintained by Nikola Draskovic Jelcic ().