Financial Market Trends and Policies

Increasingly globalised financial markets challenge policy makers and have more and more impact on the real economy. With the major financial players free to allocate their portfolios between countries, the actions of national authorities are subject to the scrutiny of world financial markets.

What's new

OECD sets out framework for overhaul of financial regulation

03-Dec-2009

The OECD has established a set of key principles to guide financial policy makers as they look to fundamental reform that will achieve strong, resilient financial systems that play their part in driving economic growth. 

Expanded Guarantees for Banks: Benefits, Costs and Exit Issues

19-Nov-2009

The expansion of guarantees for banks by governments has been a key element of the policy response to the recent financial crisis. This course of action was helpful and it has avoided a further accelerated loss of confidence in banks. But it is not without costs. Costs include those arising from distortions to competition and incentives. Additional costs have arisen as policy actions have not been as closely coordinated across borders as might have been desired. Going forward, policies need to be more consistent.

Insurance companies and the financial crisis

27-Oct-2009

This article discusses vulnerabilities in selected segments of the insurance sector and identifies specific issues related to the role of the insurance sector in the current financial crisis.

The Financial Crisis: Reform and Exit Strategies

17-Sep-2009

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.

Financial Market Trends No.96

10-Jul-2009

This edition focuses on issues related to the financial and economic crisis, including articles on corporate governance lessons, government guarantees for financial institutions, private pensions, sovereign borrowing, government debt issuance, and the role of stock exchanges in corporate governance.

Dealing with the financial crisis and thinking about the exit strategy

11-Jun-2009

This article looks at the stages of financial crisis management and some of the different degrees of transparency on losses and risks in the US and Europe. It compares alternative approaches to dealing with impaired assets used in the US and Europe, examines the capital needs of banks where exposure to off-balance losses remains a key issue and outlines the requirements of longer-run reform.

OECD research supports risk-sharing in private pension arrangements

23-Jun-2009

A new article ("Evaluating Risk Sharing in Private Pension Plans") analyses the main trade-offs embedded in different pension arrangements. The stochastic simulations performed show that hybrid plans (those in between traditional DB and individual DC) appear to offer efficient and sustainable forms of risk sharing.

OECD governments are coping with exploding borrowing needs

11-Jun-2009

A new article (OECD Sovereign Borrowing Outlook 2009)  projects that gross borrowing needs of OECD governments are expected to reach almost USD 12 trillion in 2009. In response, sovereign debt managers have begun to plan or implement medium-term exit strategies to avoid future “crowding out” and issuance problems. A related article (New Challenges in the Use of Government Debt Issuance Procedures, Techniques and Policies in OECD Markets) explains that the ongoing crisis has prompted a review of sovereign issuance procedures and policies.

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