G7 agrees financial system resilient
Bank of Japan Governor Kazuo Ueda, Italy's Economy Minister Giancarlo Giorgetti, Bank of Italy Governor Ignazio Visco, Canada's Minister of Finance Chrystia Freeland, Bank of Canada Governor Tiff Macklem, Bank of France Governor Francois Villeroy de Galhau, European Commissioner for Economy Paolo Gentiloni, Deputy Governor of the Bank of England Jon Cunliffe, Eurogroup President Paschal Donohoe, and Organisation for Economic Cooperation and Development Secretary-General Mathias Cormann attend a family photo session at the G7 Finance Ministers and Central Bank Governors' meeting in Niigata, Japan, May 12, 2023. REUTERS/Issei Kato
Finance ministers and central banks from the Group of Seven rich nations agreed the global financial system is resilient but the need for vigilance remains, Japan’s finance minister Shunichi Suzuki said on Saturday.
The officials issued a joint statement vowing to address regulatory gaps in the banking system discovered during recent problems at US and Swiss banks, and said they would continue to work closely with supervisory and regulatory authorities to monitor financial sector developments.
“We reaffirm that our financial system is resilient, supported by the financial regulatory reforms implemented after the 2008 global financial crisis, including considerable increases in the levels of bank capital and liquidity, an international framework for effectively resolving failing institutions, and strengthened cross-border regulatory and supervisory cooperation,” it said.
British finance minister Jeremy Hunt told reporters at a separate event that G7 finance chiefs in Japan had “very frank and open discussions” about the challenges they face, including banking regulation.
He said Britain believed the regulatory structures worked as intended and prevented much worse problems, but there were clearly lessons to be learned, including how digital transfers had accelerated the rapid pace of deposit withdrawals.
Published in The Express Tribune, May 14th, 2023.
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