of a coordinated regional response undermines our ability to dialogue effectively with the ifis on appropriate regional standards. we are indeed fortunate to have assembled here today a group of people who could articulate the various dimensions of the issue. i would hope that our discussions today would clarify the role of the fsb and the other g20 institutions and advance the discussion on a regional reform agenda, perhaps developed with the technical support of these global bodies that has been placed on offer. this is the surest way of helping the region in “ the race to the top ”. bis central bankers ’ speeches

and are currently being implemented. as you know, in the aftermath of the crisis there was widespread concern for building a stronger global financial system and for more pro - active oversight. the regulatory response to the crisis, which has focused largely on the advanced countries, has been the proposal to upgrade basel ii into basel iii, as a step towards creating a stronger and safer financial system. bis central bankers ’ speeches the cornerstone of the new regulatory system is revised capital and liquidity requirements. a lack of high quality capital was rightly identified as a major cause of the financial crisis and thus basel iii seeks to raise the quality and quantity of capital. similarly, the crisis highlighted the crucial importance of liquidity and basel iii provides for detailed liquidity standards at a global level. the regulatory reform agenda provides, inter alia, for additional measures ( higher lossabsorption buffers, more intense supervision and stronger resolution ) to deal with systemically - important financial institutions ( sifis ). in addition, countries are expected to put in place macro - prudential oversight bodies and frameworks to support and complement the above micro - prudential measures. one notable off - shoot of the recent financial crisis is enhanced visibility that has to be given to the g20 which was given the mandate to prepare the action plan for financial market stability and global growth and to supervise the implementation of the reforms to the global financial system. the g20, in turn, gave to the financial stability board ( the fsb ) the responsibility for monitoring the implementation of and raising the level of adherence to international standards. along with the fsb, the g20 also re - created the global forum for transparency and exchange of information ( referred to as the global forum ), whose mandate is to perform peer reviews on standards and codes in the area of taxation. these institutions are complimented by the fatf whose responsibility is to enforce standards and codes concerning anti - money laundering and the financing of terrorist activities. the mandate of the fsb, which consists of the g7 and the larger emerging market economies, was to take the lead in the introduction of the regulatory reforms and adherence to other international standards and to encourage other countries, both developed and developing, to do likewise. it was envisaged that the fsb would lead by example and would conduct peer reviews and ensure implementation of international standards through peer reviews. in early 2010, responding to a request by the g20, the fsb launched an initiative to encourage the adherence of all countries