Lesson learnt from the crisis

The international financial system is being revised.When the crisis arises, it is being revised in response to its failure to anticipate and overcome the current Asian crisis. The objective of the revision of the Asian crisis is to strengthening the financial system and architecture for the global market place for the next generation. According to IMF survey report (September 1998) outlines five elements of this proposed financial architecture. 1. Providing greater transparency and reporting Its providing a greater transparency and reporting by public and private sectors for the better functioning of financial markets. IMF also want to strengthen the transparency of its own policies and advice through the wider use of Public Information Notice (PIN) and publication of Policy Framework Papers (PFP). 2. Recognising the importance of the private sector involvement In order to prevent and resolving the crisis, it is very important for the private sector to being involved.

3. Encouraging cautious liberalisation of capital movements

4. Implementation of internationally accepted standards

5. Provide confidence restoring financial measure It will provided confidence for restoring financial measures to reduce vulnerability to changes in investor sentiment through well capitalised and regulated banking and financial institutions.