four areas of reform would need to be considered first further improvements to international financial regulatory framework are needed to stem excessive risktaking and capital flow volatility including through appropriate capital controls and macroprudential regulatory reforms imposing countercyclical biases in rules for reserve requirements and loanloss provisioning second as new systems of regulation are being elaborated there is a need for a fundamental revision of existing mechanisms of compensatory financing designed to cope with external shocks such revisions should ensure more adequate availability of and easier access to international liquidity especially for developing countries