‘Capital markets are key source of finance’

A capital market expert highlighted the need for world financial sources to work together to boost marketbased finance.

Chairman of the Board of the International Organisation of Securities Commissions (IOSCO), Greg Medcraft, made this known last week in Madrid, Spain, when the commission met to drive forward IOSCO’s work on market-based finance. Medcraft said: “Capital markets are emerging as a key source of the finance needed across the globe to drive economic growth. Through a work agenda focused on fostering markets as a trusted source of capital, IOSCO is playing an important role in supporting that growth.”

During the meeting of the 32-member board drawn from developed and emerging markets, members discussed developments on a number of key initiatives.

On initiatives to support the G20-FSB efforts to restore stability in the global financial system and build economic growth, the board discussed the methodologies for identifying financial institutions and activities in the areas of asset management and market intermediaries.

The board discussed on the role capital markets and securities regulators can play in supporting long-term finance, including infrastructure investment and SME financing.

The board believed there was need to improve investor protection and confidence in markets.

Board members also examined policy measures aimed at building capacity in emerging markets and supporting the creation of strong regulatory frameworks for sustaining growth in both emerging and developed markets.