The phrase Global Financial Architecture (GFA) essentially refers to the comity of institutions and
their functionalities globally, relating to financial
intermediation/ disintermediation roles, management of capital flows across
the countries and continents, management of exchange rates,
issues governing fiscal and economic polices, global
imbalances in trade and finance, financial market regulations and their
stability including crisis mitigation/prevention, etc. This phrase
has acquired added significance in the context of the recent global
financial and economic turbulence that has adversely affected
many countries.
The present architecture consists of the International
Monetary Fund (IMF), World Bank, separate international
boards for accounting standards and auditing standards,
payment and securities settlement systems, Bank for
International Settlements dealing with banking supervision and the
international association for insurance, etc. Additionally, various
banks and Financial Institutions (FIs), stock exchanges and
central bankers also form part of this architecture.
The IMF is a global organization that has voluntary membership
of 185 countries. Its principal objectives are fostering global
monetary co-operation, ensuring financial stability, facilitating
international trade, working towards high economic growth and
employment, besides global poverty reduction. |
