Officials issued a joint statement pledging to address regulatory shortcomings discovered in the banking system in light of recent issues affecting U.S. and Swiss banks, and said they would continue to work closely with supervisors and regulators. regulators to monitor developments in the financial sector.
“We reaffirm that our financial system is sound with the support of financial regulatory reforms implemented after the 2008 global financial crisis, including significant increases in banks’ capital and liquidity levels, an international framework to effectively resolve issues of failing institutions, and strengthen regulatory and supervisory cooperation,” the statement read.
At a separate event, UK Finance Minister Jeremy Hunt told reporters that G7 finance ministers in Japan had “very frank and open discussions” about the challenges they face, including regulation banking.
He said Britain believed the regulatory structures were working as intended and preventing much worse problems, but there were clearly lessons to be learned, including how digital remittances were speeding up deposit withdrawals.
He hailed Britain’s swift decision to facilitate a private sale of Britain’s Silicon Valley unit to HSBC, a move that protected deposits without taxpayer support, describing the move as a success story for regulators .
But he said Britain was reviewing legal and regulatory structures to ensure depositors could access their deposits as quickly as possible without any further mishaps occurring in the future.
Hunt said Britain was thinking pragmatically in terms of the number of high-growth companies concentrated in a branch of a US bank and realized that funding options for these sectors needed to be more diverse.
“We are looking at a wide range of things, including pension fund reform, to see if we can give these companies more options,” he added.
Japan’s finance minister told a press conference that the issue of the US debt ceiling was raised at a working dinner on the global economy, but he declined to divulge what others ministers had said about it.
Ministers concluded a three-day meeting in the Japanese city of Niigata.
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