Press Releases

Treasury Posts U.S. Self-Assessments Relating to Compliance with 12 Key International Standards and Codes

(Archived Content)

Treasury Secretary Paul O'Neill today announced the release of a series of U.S. self-assessments relating to compliance with international standards designed to strengthen financial systems in countries around the world. Some of the self-assessments have been completed previously by various public and private organizations, but are being made available via a new page on the Treasury website http://www.treasury.gov/resource-center/international/Pages/Standards-and-Codes.aspx

The release of U.S. self-assessments is part of an international effort to improve transparency globally as a way to promote stronger financial systems that can withstand crises. The creation of the new website is the culmination of a cooperative effort between the U.S. Treasury and the Commodities Futures Trading Commission (CFTC), the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), the National Association of Insurance Commissioners (NAIC), the Office of the Comptroller of the Currency (OCC), the Office of Management and Budget (OMB), and the Securities and Exchange Commission (SEC).

Secretary O'Neill said, "Crisis prevention requires all countries to pursue sound policies and develop robust financial sectors. Adopting practices that meet or even exceed key international standards for financial systems - such as bank capital, supervisory standards and accounting principles - is critical." He went on to say, "The inter-agency process that contributed to this release demonstrates the strong support of the United States for standards and codes, our recognition of the critical role that the standards process can play in strengthening crisis prevention, and the government-wide commitment to transparency."

The standards covered by the assessments are the 12 key standards highlighted by the Financial Stability Forum (FSF) in its Compendium of Standards. The United States is a member of the FSF, and helped to identify the 12 key standards, which cover the areas of macroeconomic policy and data transparency, institutional and market infrastructure, and financial supervision and regulation.

The 12 key standards (and the standard-setting body) highlighted in the FSF Compendium are:

  1. Code of Good Practices on Transparency in Monetary and Financial Policies (International Monetary Fund)
  2. Code of Good Practices on Fiscal Transparency (International Monetary Fund)
  3. Special Data Dissemination Standard/General Data Dissemination System (International Monetary Fund)
  4. Principles and Guidelines for Effective Insolvency and Creditor Rights Systems (World Bank)
  5. Principles of Corporate Governance (Organization for Economic Cooperation and Development)
  6. International Accounting Standards (International Accounting Standards Board)
  7. International Standards on Auditing (International Federation of Accountants)
  8. Core Principles for Systemically Important Payment Systems (Committee on Payment and Settlement Systems)
  9. The Forty Recommendations of the Financial Action Task Force (Financial Action Task Force)
  10. Core Principles for Effective Banking Supervision (Basel Committee on Banking Supervision)
  11. Objectives and Principles of Securities Regulation (International Organization of Securities Commissions)
  12. Insurance Core Principles (International Association of Insurance Supervisors)

Countries that work toward meeting or exceeding these standards will help promote financial stability by strengthening financial regulation and supervision, improving transparency, improving market integrity, and facilitating better-informed lending and investment decisions.

The IMF and World Bank have established a process for assessing countries' implementation of the 12 key standards, which are published as Reports on Observance of Standards and Codes (ROSCs). Most of the ROSCs that have been completed to date are available on the IMF website and World Bank website.

The U.S. self-assessments are not meant to be a substitute for external assessments under the IMF and World Bank ROSC program. However, the U.S. is making available the self-assessments, which can be a valuable input into the external assessment process, in order to help promote greater awareness of U.S. practices.

 

LINKS

Use featured image
Off