Newsletter October 09: IMF warns governments not to relax on regs reform

WASHINGTON – A clear vision of future financial system regulation is needed to provide clarity and boost confidence, says the International Monetary Fund (IMF), the multinational agency that monitors the global economy, in its latest financial stability report. It urges governments and other authorities not to be tempted by the recent easing of tail risks (catastrophic risks) to relax their efforts to map out the path to a more robust financial system. “A holistic, understandable approach needs to be formulated so that the private sector can plan appropriately,” the IMF says.