Beijing, China - The Institute of International Finance (IIF), representing more than 370 member financial services firms operating across the world, held its Spring Membership Meeting from June 10-12, 2009 in Beijing – the largest IIF meeting ever held in China. The meeting has attracted senior Chinese government officials and their counterparts from across the world, together with leaders of many of the largest globally active financial services firms.

Dr. Josef Ackermann, Chairman of the IIF Board of Directors, Chairman of the Management Board and of the Group Executive Committee of Deutsche Bank AG, said the IIF meeting is particularly timely and, “The global crisis has underscored the importance of China and other leading emerging market economies on the world stage. It is appropriate that we meet here now and listen carefully to our many colleagues at this conference from China and from other emerging market economies. Their contribution to global recovery is likely to be significant.”

Dr. Ackermann said, “We meet here in Beijing in intensive working sessions to forge understandings and to come together under the IIF’s umbrella to press ahead with a vital agenda.” A key priority is implementing the many recommendations of the Final Report of the IIF Committee on Market Best Practices, published last year that covered risk management; compensation policies; liquidity risk, conduits and securitization; valuation; the ratings process and credit underwriting issues; as well as transparency and disclosure. Noting reforms in risk management and compensation approaches being taken by financial services firms, Dr. Ackermann said, “There is still a great deal to do, but it is important to bring to your attention that significant progress is being seen today on taking the lessons from this crisis and moving forward to implement far-reaching reforms.”

He noted that, “We are not only working hard to implement best practices in many key areas of our businesses, but we are looking ahead to promote crisis avoidance. Here again we have been busy at the IIF. We have established a Market Monitoring Group to detect systemic risks at an early stage and focus the world’s attention on these risks. Our goal is to develop an early warning system and in so doing, help to strengthen the global financial system.”

In addition, he stressed progress under IIF leadership on a range of regulatory issues, such as how much capital is put against the trading book, reducing procyclicality, and establishing a level playing field in global accounting approaches. He noted that, “In addition, a key topic of our attention relates to risks associated with today’s high levels of market inter-connectedness. There is a need to formulate approaches that promote both greater market stability and ensure that markets operate efficiently.”

Dr. Ackermann said, “We believe that reform of the global architecture should be guided by three objectives: first, ensuring the safety and soundness of customer deposits and the protection of investors; second, making certain a regulatory system is in place that safeguards systemic soundness; and, third, ensuring that the rules of the game and the supervisory structures they require support the ability of the financial system to innovate, to promote enterprise and competition and to be a forceful engine of growth. We do not think it will helpful to focus reforms on issues such as the size of individual institutions or the scope of their businesses.”