FACTBOX-Recommendations of Financial Stability Forum

April 9 (Reuters) - A report on Friday to Group of Seven finance chiefs from the Financial Stability Forum will recommend numerous steps to improve disclosure and better manage risks to try to avoid a repeat of current global market turmoil.

According to the U.S. Treasury and other G7 sources, the recommendations from the FSF, which includes central bankers and global regulators who have worked on the issues for eight months, will include the following:

--By July, supervisors should improve their guidelines for the way banks plan for cash shortages. Banks should run "stress tests" to ensure they can get cash in emergencies;

--By year-end, teams of supervisors from major countries should be assigned to monitor the biggest banks which work across international borders;

--Financial institutions should improve risk management by establishing larger buffers for capital and liquidity needs, and the Basel Committee should impose higher capital requirements for off-balance sheet securities and complex instruments;

--Banks should increase transparency by more fully disclosing exposures to risk and offering fair-value estimates for complex securities, while the International Accounting Standards Board should quickly set tougher standards for off-balance sheet entities;

--Credit rating agencies should be required to distinguish the ratings set for structured products and improve their transparency as well as ensure information used to set ratings on structured products is of the highest quality;

--Central banks and supervisors should meet more frequently, exchange more information to ensure greater awareness of cross-border risks;

--Central banks should take steps to ensure they can effectively offer liquidity when the financial system is under stress and strengthen plans for dealing with weak or failing banks, whether domestic or cross-border institutions.