The International Monetary Fund (IMF) plans to strengthen its financial and capital market work by creating a new Department within its operational structure that will be a centre of excellence for all aspects of its financial, capital market, and monetary work.
Proposals are that this new department will merge the functions and staff of two existing departments, namely the International Capital Markets Department (ICM) and the Monetary and Financial Systems Department (MFD).
Managing Director Rodrigo de Rato said over the course of its 60-year existence, the Fund has adapted to changing global economic circumstances in order to assist its membership and to perform its important function of global and bilateral surveillance. He said the announced changes *” will put financial issues at the centre of the Fund’s work and ensure that our financial expertise better serves our 184 country members.”*
Mr. De Rato points out that in a globalised world where capital moves almost instantaneously across borders, the distinction between domestic and international financial markets is increasingly blurred. Similarly, the supervision and regulation of banks and capital markets, and the conduct of monetary policy need to take into account global integration. *”By bringing under one roof work that is currently spread among a number of departments we will improve the cohesion of our work and use our resources efficiently. I see this merger as logical evolution of the work the Fund has been doing in this area over the past several years.”*
An IMF Financial Sector Steering Committee will guide the merger and, going forward, will coordinate financial sector work, and ensure close involvement of IMF management in financial sector issues.