The G7 countries agreed this Saturday May 13 review banking regulation before the gaps exposed by the recent bankruptcies in the sector, and opted for diversify supply chains With views to reduce dependence on China.
After three days of meeting in the Japanese city of Niigata, the ministers of Finance and governors of central banks of the Group of Seven promised to continue working for guarantee the stability of the financial system facing the challenges of its transformation.
Even though he G7 It showed itself trusted in which the current financial system is robust enough after reforms carried out as a result of 2008 global crisisconsiders that the recent turmoil is indicative of the need to continue monitoring and acting on the evolution of the sector.
“We will address the gaps in data, supervision and regulation of the banking system”He said group of seven in their joint statement, where they also assured that “appropriate measures will be taken to maintain financial stability”without specifying more about it.
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Banking reform was not initially on the meeting’s agenda, but the collapse of various financial institutionsamong them the Silicon Valley Bank American and Swiss Credit Suisseled the Japanese chairmanship of the group to emphasize this issue.
According to the statement, the G7 studied “the lessons learned” from these episodes and placed as a priority strengthen financial securityincluding the analysis of “the vulnerabilities in non-bank financial intermediation” and the establishment of standards in its regulation.
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Another G7 priority: diversify the supply chain
“We recognize the urgent need to address the vulnerabilities existing within the supply chains highly concentrated” in certain countries for key products, also said the partners, who seek to open a dialogue with emerging powers that they can become global providers.
Although the document does not mention the country expressly, the G7 search with this diversification end the dominance of china as a source of components and materials strategic importanceand whose reliance was evident in supply chain disruptions during the pandemic.
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The partners consider that “the diversification of supply chains can contribute to safeguarding energy security and help to maintain the macroeconomic stability“, and they announced an initiative in this regard together with external partners whose release is scheduled for End of the year.
The main objective of the initiative is to include in the project emerging economies for them to “play a greater role under a mutually beneficial association,” according to the Japanese minister of Finance, shunichi suzukiin a press conference after the forum.
Source: Ambito
