The International Monetary Fund failed to sound the alarm or give a diagnosis, let alone any remedy, when financial problems first occurred in developed countries, said Zhou Xiaochuan, governor of the People's Bank of China, on Saturday.

Zhou made the comment at a panel discussion during the Boao Forum for Asia annual conference, saying that the IMF needs improvement in this respect.

Zhou said he understood that it might be hard for the IMF, a global organization, to make decisions.

"It is hard to imagine that any research institution could monitor each event in every corner of the world," Zhou said, noting that regional institutions might have more advantages in this field.

"International financial institutions need reform, and have many weak points," said Zhou, adding that a combination of international and regional organizations would be a good option.

Regional institutions such as the Asian Development Bank could also alleviate the impact of the financial crisis through increasing spending and boosting regional activities, he said.

(Xinhua News Agency April 20, 2009)