Lesson learnt from the crisis

The international financial system is being revised.

When the crisis arises, it is being revised in response to its failure to anticipate and
overcome the current Asian crisis. The objective of the revision of the Asian crisis is to
strengthening the financial system and architecture for the global market place for the next
generation. According to IMF survey report (September 1998) outlines five elements of this
proposed financial architecture.
1. Providing greater transparency and reporting
Its providing a greater transparency and reporting by public and private sectors for
the better functioning of financial markets. IMF also want to strengthen the
transparency of its own policies and advice through the wider use of Public
Information Notice (PIN) and publication of Policy Framework Papers (PFP).
2. Recognising the importance of the private sector involvement
In order to prevent and resolving the crisis, it is very important for the private sector
to being involved.
3. Encouraging cautious liberalisation of capital movements
4. Implementation of internationally accepted standards
5. Provide confidence restoring financial measure
It will provided confidence for restoring financial measures to reduce vulnerability to
changes in investor sentiment through well capitalised and regulated banking and
financial institutions.