The Institute of International Finance (IIF) on Thursday called on finance ministers and central bank governors to address critical global economic and financial markets challenges.
"The difficulties facing the global economy have become critical and call for decisive leadership now by national authorities, central bankers and regulators, as well as by financial services firms," said Charles Dallara, managing director of the Institute of International Finance, the global association of financial institutions with more than 375 members across the world.
In a policy letter on behalf of the IIF's membership that was sent Thursday to the world's Finance Ministers and Central Bank Governors, who will be meeting in Washington DC next week, Dallara stated that while financial markets have been somewhat calmer most recently, considerable risks remain and these call for urgent action.
He said that the finance leaders should agree "to take firm measures aimed at restoring confidence in financial markets, supporting global growth, and maintaining orderly foreign exchange markets."
"The credit market turmoil has persisted for almost a year, spreading from subprime mortgages to other credit sectors and seizing up certain market segments. A range of financial institutions have reported substantial losses and some have failed," said Dallara.
"In such circumstances, the range of options available to policymakers is becoming narrower and the required response time shorter," he noted.