Dear Prof. Fouad Beseiso,

Definitely YES, the international financial system should be reformed in many aspects of its operation, in order to reduce the likelihood of future appearance and the scale of negative effects - another global financial crisis.

Best wishes

The main determinants that led to the generation of the global financial crisis in 2008 and what needs to be improved in the functioning of banks and other financial sector institutions I described in the following publications:

Article ACTIVATING INTERVENTIONIST MONETARY POLICY OF THE EUROPEAN C...

Article A safe monetary central banking policy as a significant inst...

Article Anti-crisis state intervention and created in media images o...

Article Soft monetary central banking policy and Plan for Responsibl...

Article Determinants of credit risk management in the context of the...

Article Importance and implementation of improvement process of prud...

I invite you to discussion and cooperation.

Best wishes

Yes Sir, corrective measures must be taken but it should not be implemented in the financial sectors only. True reforms take years to provide fruits and should be implemented at the grass root levels. Our children do not know anything about financial wisdom. They need to be taught about how/when/where to invest and to save. Their financial education and training will make them good future investors. That is the best way to do it constructively in my opinion. Policy makers must decide and plan for coming decades.

In discussions of this kind the goal is still missing.

The crises that have occurred over the last 30 years are purely financial in nature. Hence, caused by those who "govern" the financial systems.

How can who caused the damage repair the damage?

It is this question that must be answered.

Classical responses to financial crises include "low interest" cash to stimulate demand from the proverbial John Doe who has always picked up the tab for the failures of the stewards of the financial system. Question is: who is monitoring to ensure that John Doe gets the money to stimulate the demand? A financial Ombudsman for the people is what we need and capacity building for John Doe to Demand and obtain that low interest cash.

International Financial System needs to be reformed daily because it is integrating daily...

I think the IMF can play this role.

While I believe in building the knowledge base for coming generations enabling them to live the blessing of just; safe and sound global financial system; however the indepth current human suffering caused by crisis and failure of current system necessitate urgently reform .Reform could not be done by the institutions themselves but shoul be imposed by all related players and forces within a strog well.

The current regulatory system may have flaws .

1. The Basel 3 recommendations have been designed to cure the past events based on the understanding that banking is going to return to the old traditional formats, and remain as traditional as was imagined after 2008. The markets have moved on so fast that the basic design of the regulations which emphasise more on the CET1 Capital and buffers are outdated.

2. The design of the regulations has not taken into consideration the basic need that triggered, for example the Mortgages Markets to behave that way. The absolute need was housing ... there has not been any regulations that seek to resolve such a global problem or even at a national levels in USA or UK or the EU. The regulations put forward in most of the situations are basically figuring out how the Mortages market can be stopped/slowed down . The manor in which the banks leveraged on mortages might have been wrong, but the efforts to stiffle that market through regulation makes the current regulations just suppress a actual underlying problem.

3. Current regulations could have been adopted (eg from Basel2 , 3 ) from a very nationalistic or inward looking perspectives as countries tried to figure out some self preserving strategies. The UK regulations may not have been designed to take into consifderation the extent of the influence of the UK finacial system to the global markets.

4. There is an over emphasis on capital. The question is not how much CET1 Capital can withstand a volatility and losses for a bank, but rather , is the CET1 and any form of capital(and liquidity) the real ultimate measure or only measure of what a bank really needs. There are a lot more liquidity and balance sheet dynamics and strategies that should be considered alongside capital measures.

Igual no es necesaria la reforma del Sistema financiero internacional, este funciona como debe, con sus riesgos y aciertos. Lo que igual deberíamos reformar es la política monetaria diseñada a nivel internacional, que acentúa los impactos negativos en el sistema financiero internacional. Pero aunque siempre es más fácil la reforma de la propia intervención en la economía (no eliminarla claro está), la tendencia es a reformar la intervención sobre el funcionamiento del mercado privado.

(Sorry) The same is not necessary in the reform of the international financial system, it works as it should, with its risks and successes. What we should reform equally is monetary policy for an international level, and to accentuate the negative effects on the international financial system. But although it is always easier, the tendency is to reform the intervention on the functioning of the private market.

Fundamental issues ask for fundamental answers. The world needs fundamental change form ego-nomics to oiko-nomics. The whole of our living world – nearby and far away – should be taken into account (cf. Kate Raworth’s Doughnut Economics), not only short term financial return, although our old friend homo economicus still prefers that, but his enlightened insights have turned out not to be that bright, have they?

Due to the liberalisation in the past forty years the financial markets have been put in the lead of the global economy. They are not able to handle that in a proper way. There’s no level playing field and so it’s not a game of fair play. Capital always and everywhere wins the competition, going around the world by glass fiber with the speed of light. Labour looses the game. Land and housing can’t move around, so only their prices rising sky high can follow the capital mobility. That’s the fundamental economic and financial problem. Let us call it: capital-ism.

To make a fundamental change we have to stop speculative international capital flows. Free capital mobility is at the heart of the matter. Bretton Woods stopped them for about thirty to forty years, although circumvented by the Eurodollar market. Money creeps where it can’t go. But the world has experienced a fundamental financial stability from 1945 till the 1970s, unseen in modern history.

Money should not be an end in itself, but a means towards economic prosperity. Money should not leak away to the global financial markets to get undue financial profit. It should function more “locally”, nationally, regionally, like all those initiatives everywhere (Sardex, Liberex, Bristol Pound, etc. etc. etc.) or in the way Singapore finances its public housing, etc. etc. We should think again about the proposal for an International Clearing Union of John Maynard Keynes at Bretton Woods. Money should be a national phenomenon, to dampen the international effects of instabilities in economic and financial life.

The world is in need of a new Bretton Woods. Not only to tackle the fundamental problems in the global financial system, but to face also the challenges of the digital age, which brings the world sheer unending opportunities but as many threats. The digital age has its basis in a fundamental unequal global distribution of digital knowledge based on financial capital distribution, built up the last forty years in the global financial markets.

The world is in need of new Bretton Woods on the global digital and financial system, based on fair play. That’s to say, not on ego-nomics but on oiko-nomics, taking account of the whole global oikos, of real oiko-logy for the sake of oiko-mene, the wellbeing of all people. Modern economic thinking should be reframed in this way.

That's not so easy, but also the longest journey begins with a first step.

The international financial system is not the cause of financial crises, but these crises occur mainly for political reasons.