The Financial Crisis. Reform and Exit Strategies

The financial crisis required governments to make massive interventions in their financial systems. This book sets out priorities for reforming incentives in financial markets as well as for phasing out these emergency measures.

Two questions, then, are at the core of this report: How and when can governments safely wind down their emergency measures? And how can we sensibly reform financial markets? The purpose is to draw together and demonstrate the interconnections among a wide range of issues, and in doing so to contribute to global efforts to address these challenges.




Table of Contents
I. Introduction
II. Priorities for Reforming Incentives in Financial Markets
• A. Strengthen the regulatory framework
• B. Focus on integrity and transparency in financial markets
• C. Strengthen capital adequacy rules
• D. Strengthen understanding of how tax policies affect the soundness of financial markets
• E. Ensure Accountability to Owners who’s Capital is at Risk
• F. Corporate Structures for Complex Financial Firms
• G. Strengthening financial education programmes and consumer protection
III Phasing Out Emergency Measures
• A. The timeline for phasing out emergency measures
• B. Roll-back measures in the financial sector
• C. Fostering corporate structures for stability and competition
• D. Strengthening corporate governance
• E. Privatising recapitalised banks
• F. Getting privatisation right
• G. Maximising recovery from bad assets
• H. Reinforcing pension arrangements