I. The formative years of OECD’s work on financial markets: 1964-1980 11

-1. General environment 11

-2. Reforming domestic financial systems and promoting capital mobility 11

-3. Early stirrings of market liberalisation 12

-4. Improving securities markets and investor protection 13

-5. The CMF’s working methods take form 15

-6. Non-member countries in the international financial market 16

II. The emergence of a global financial system: 1980 - 1987 20

-1. Understanding basic structural changes in banking 20

-2. Promoting international competition in financial services 21

-3. EMEs and the post-1982 debt crisis 23

-4. The expansion and internationalisation of securities business and the creation of the group of Government Debt Managers 24

III. Facing up to a globalised financial system with growing systemic risk: 1988-2000 28

-1. Systemic risk tests the adequacy of existing supervisory systems 28

-2. A decade of crises 29

-3. Structural change accelerates and impacts the Committee’s work 31

--(i) New challenges for banks 32

--(ii) Ownership linkages in financial services and growing size of institutions 33

--(iii) Securities market structure and regulation 33

--(iv) Securitisation 34

--(v) Privatisation and capital markets 34

--(vi) Risk capital 35

--(vii) Institutional investors 35

--(viii) Ageing 36

-4. Policy dialogue on financial reform in non-member countries 36

IV. A fully mature financial system: 2000-2007 38

-1. General environment 38

-2. Institutional investors and financial governance 40

-3. Financial markets issues related to the management large-scale disasters  41

-4. Risk capital and SME financing 42

-5. Developing policy responses to the transfer of risk to the household sector 43

--(i) Coping with risks to retirement benefits 43

--(ii) Financial education and financial consumer protection 43

V. The 2007 crisis and beyond 45

-1. Redefining the relationship of financial regulators and supervisors to the market 45

-2. Activities of the CMF to address the crisis 46

--(i) Overview 46

--(ii) Contribution to the OECD exit strategy and intensive monitoring 48

--(iii) Improving banking structure and competition 48

--(iv) OECD Policy Framework for Effective and Efficient Financial Regulation 49

--(v) Devising a strategy to reduce government guarantees 50

--(vi) Regulatory issues related to financial innovation 50

--(vii) Long-term investment financing 51

--(viii) Financial consumer protection and education 52

--(ix) Participating in the work of the Financial Stability Board (FSB) 53

-3. Enlarging OECD membership and broadening the policy dialogue with non-member countries 54

--(i) Accession candidates’ reviews by the CMF 54

--(ii) Engagement with key partners 54

--(iii) Key partner countries in finance: CMF Policy Dialogues 55

-4. Building on the dialogue with the private sector: the OECD Financial Roundtables 55

-5. The CMF’s current programme of work and structure 58

--(i) CMF’s objectives and mandate 58

--(ii) Main directions of the CMF Programme of Work 58

--(iii) Financial market surveillance, financial statistics and debt management 59

--(iv) Promoting efficient policy responses to the new financial landscape 60

--(v) Efficiency and effectiveness of regulatory approaches in the financial sector 60

--(vi) Improving the capacity of financial markets and individuals to respond to financial challenges 60

--(vii) Promoting financial education 61

--(viii) Enhancing financial consumer protection 63

--(ix) Promoting the contribution of financial markets and institutions to savings, financing of business, growth and infrastructure 63

--(x) Promoting the liberalisation of international trade and market access in the financial services sector 64

-6. Outlook 65

VI. Conclusion 66

References 79

Annex: Historical Index of Features 85