G7 vows to ensure financial stability after US bank failures
- The group underlined the need to address ‘data, supervisory and regulatory gaps’ in banking systems, and to build robust supply chains with developing nations
- The gathering, under the presidency of Japan, came amid bank and debt woes – specifically in the US – that have cast a cloud over the global economy
Finance chiefs of the Group of Seven nations vowed Saturday to take appropriate action to ensure financial stability after a series of US bank failures raised concern about spillover effects, asserting that the financial system remains resilient for now.
In a joint statement after a three-day meeting in Niigata, the G7 underlined the need to address “data, supervisory and regulatory gaps” in the banking system after they weighed risks from the widespread use of messaging apps and online banking, blamed for causing digital bank runs.
The G7 also said it will aim to launch efforts to build robust supply chains with developing nations by the end of the year, apparently with non-member China in mind.
“We will continue to work closely with supervisory and regulatory authorities to monitor financial sector developments and stand ready to take appropriate actions to maintain financial stability and the resilience of the global financial system,” the joint statement said.
The gathering, under the presidency of Japan, came amid bank and debt woes that have cast a cloud over the global economy. European lender Credit Suisse suffered a sharp fall in its stock price due to the banking turmoil, leading to its acquisition by rival UBS.
