German President Horst Koehler said Monday that the International Monetary Fund (IMF) should be given more power to regulate the world's financial markets.
The world needs "an independent, competent institution with responsibility beyond national borders for the stability of the international financial system," said Koehler in his annual address to the German parliament in Berlin.
"This task could be given to the IMF," said the German president, who is a former IMF managing director.
Koehler suggested the United Nations, the IMF, the World Trade Organization and the International Labor Organization work more closely on the issue.
He called for UN Secretary-General Ban Ki-moon to summon a meeting of heads of world bodies to draft guidelines for cooperation.
German Chancellor Angela Merkel has been urging more regulations on the global financial markets, particularly on the hedge fonds, but the world's leaders failed to reach an agreement during the G8 summit of the industrial nations in June in Germany.