DEPUTY Governor of the People's Bank of China Yi Gang on Saturday called for international cooperation to restore global financial stability.

"Our current priority is to enhance international cooperation to prevent further deterioration and spillover of the crisis and restore global economic and financial stability," Yi said in Washington.

The worsening United States financial crisis has triggered a major global slowdown and escalated uncertainties, Yi said during the 18th meeting of the International Monetary and Financial Committee held in the US capital on Saturday.

While advanced economies have slowed sharply since the US subprime crisis, emerging markets have kept robust growth but the deteriorating external environment is testing the resilience of their macroeconomic policies, he said.

The crisis has underscored shortcomings in the financial markets, Yi said. He expressed his hope that the stabilizing measures of the advanced economies will have the positive effect of calming the markets and restoring confidence.

"China is willing to strengthen its cooperation with other countries and, through such joint efforts, we hope global financial stability can be safeguarded," he said.

Yi said the major reserve currency-issuing countries should shoulder the responsibility for preventing further spill-overs and minimizing shocks to other economies - especially to the emerging nations.

To promote a balanced and steady global growth over the longer term, efforts should be made to advance structural reforms and increase savings, he pointed out.

The International Monetary Fund should carry out its mandate to safeguard global economic and financial stability, according to Yi.

The IMFC is the steering committee of the 185-nation lending institution.

Yi also noted that as the impact of the crisis on the real economy is much worse than expected and the recovery more protracted and difficult. Moreover, the risks of deflation in some countries as a result of the credit crunch have increased significantly.

"It is imperative the major advanced economies coordinate rapid implementation of bailout packages to avoid deflation and facilitate global recovery," Yi said.