Issue BriefsPublished on Aug 23, 2023 PDF Download
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The Global Financial System: A post-GFC Report Card

The International Financial Architecture has come under much scrutiny following the 2008 global financial crisis. There have been demands for major reforms to the IFA; but despite the steps taken so far, much more needs to be done to ensure global financial stability.

In the recent past, a series of crises have shaken the International Financial Architecture (IFA). The Asian Financial Crisis of 1997 which had a global impact was one of the first of these Icrises and triggered much rethinking about improving the IFA. The pillars of the International Financial Architecture—the G7, IMF, World Bank and Bank of International Settlements-BIS (Basel)—met several times after the Asian crisis to plan reforms in the global financial system. But despite the initiatives taken the Global Financial Crisis struck in 2008, followed by the European debt crisis. These developments led to renewed calls for further reforms to the IFA.

After the Global Financial Crisis, efforts were made for reforms in the IFA with the following objectives:

(i) To take stock of the main features of the Global Financial Crisis and to examine how it was able to occur notwithstanding the existing international financial standards that were installed after the Asian Economic Crisis;

(ii) To summarise and assess the initiatives taken with a view to strengthening the IFA;

(iii) To provide an overview of the reformed IFA, especially its institutional and procedural aspects;
To provide a tentative outlook on the implementation and future role of the organisations that set the International Financial standards.

This Issue Brief seeks to provide an overview of the genesis of the crisis and the efforts that have been made since 2008 towards reforming the IFA.

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Jayshree Sengupta

Jayshree Sengupta

Jayshree Sengupta was a Senior Fellow (Associate) with ORF's Economy and Growth Programme. Her work focuses on the Indian economy and development, regional cooperation related ...

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