Outreach efforts on standards and codes stress consultation and inclusiveness

• Pages: 257-265

Page 257

In its work on developing and disseminating standards, codes, and guidelines and conducting financial sector assessments, the IMF’s Monetary and Exchange Affairs Department (MAE) is stepping up its out-reach efforts. Here, V. Sundararajan, MAE’s Deputy Director, discusses why outreach efforts hold the key to effective implementation of standards and codes.

IMF SURVEY: MAE has stepped up its outreach efforts. Can you give us an overview of these activities?

SUNDARARAJAN: MAE is involved in two types of new activities: first, developing and disseminating standards, codes of good practices, and guidelines and the related assessment methodologies—often in cooperation with other standard-setting bodies—and outreach efforts that feed into and disseminate the results of its development and assessment work on standards and codes. Second, MAE has been very active in implementing the Financial Sector Assessment Program, working closely with the World Bank and in cooperation with many central banks, national regulatory agencies, and standard-setting bodies. This work helps member countries identify risks and vulnerabilities, evaluate the observance of standards and their effectiveness in addressing the risks, and assess overall financial system stability and development needs. This work also requires outreach, particularly to build consensus on methodologies for assessment and analysis.

As background, I should mention that standards, codes, and guidelines are oftenPage 264 used interchangeably to refer to a list of core principles and good practices. Assessment methodology refers to a set of more specific technical criteria and procedures used to compare a country’s practices with the relevant codes of good practices.

MAE has been engaged in designing and disseminating good practices and guidelines in the areas of monetary and financial policy transparency and guidelines on public debt management and sound practices in reserves management. In addition, MAE, working with counterparts in the World Bank, contributes actively to developing assessment methodologies for the Basel Core Principles for Effective Banking Supervision, the International Organization of Securities Commissions’ Objectives and Principles of Securities Regulation, the International Association of Insurance Supervisors’ Insurance Supervisory Principles, and Core Principles of Systemically Important Payment Systems of the Bank for International Settlements’ Committee on Payment and Settlement Systems. The IMF, in cooperation with the World Bank, also helps implement and assess these...