The International Resource Journal: G7 talks reaffirms commitment to bank reform

G7 talks reaffirms commitment to bank reform
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admin on 08 February, 2010 05:46:00
 
IRJ Feb 8 - Countries leaders have taken it upon themselves to fix the
international financial system, reaffirming their unity despite competing with
domestic issues.
Finance ministers and central bank governors from the Group of Seven
industrialized countries met in Iqaluit, Canada over the weekend with the goal
of designing a regulatory regime sturdy enough to avoid a repeat of the
financial crisis. The challenge now is following through with international
standards that will leave the financial system more resilient to shocks.
Officials have vowed new bank-capital standards by the end of the year.
European ministers told their counterparts at the G7 meeting that they would
make sure Greece sticks to its budget-cutting plan.
But analysts said Europe needs to go beyond words to restore confidence among
investors worried that problems in Greece, Portugal and other weaker euro zone
states could upset or derail the global economic recovery.
Meanwhile, the euro and growth-linked currencies fell today as investors’
unwound risky trades amid growing worries about euro zone's debt problems,
dismissing assurances from European finance ministers at the weekend meeting in
Canada’s most northern capital.
European ministers told their counterparts at a G7 meeting on Saturday they
would make sure Greece sticks to its budget-cutting plan.
But analysts said Europe needs to go beyond words to restore confidence among
investors worried that problems in Greece, Portugal and other weaker euro zone
states could upset or derail the global economic recovery.