G20 financial leaders meeting draws joint communique on financial reform (2)

16:19, June 06, 2010      

Email | Print | Subscribe | Comments | Forum 


The joint communique was founded on the Framework for Strong, Sustainable, and Balanced Growth, which is a key mechanism to meet the immediate challenges of supporting the global recovery and mid- term shared objectives.

Based on the framework were adopted a range of policy options that will later be discussed in details at the June 2010 Toronto Summit, according to the communique.

The leaders agreed on further progress on financial repair, requiring greater transparency and further strengthening of financial firms' balance sheets and better corporate governance.

They also vowed to speed up in reaching agreement on stronger capital and liquidity standards as the core of the reform agenda, calling on the Basel Committee on Banking Supervision to propose internationally agreed rules to improve the quantity and quality of bank capital.

The proposal also urged to discourage excessive leverage and risk taking by the November 2010 Seoul Summit, the communique said.

Also, the leaders agreed on the need to reduce moral hazard, while pledging to accelerate regulation and supervision of hedge funds, credit rating agencies, compensation practices and OTC derivatives in a internationally consistent and non-discriminatory way.

The communique also remarked on the World Bank's reform voice to increase the voting power of developing countries, while protecting the smallest poor nations, embracing the proposal.

The agreement also called for continued institutional reforms at international financial institutions (IFIs) led by the World Bank.

Constructing global financial safety nets was also one of the major items on the communique, with the G20 countries acknowledging a need for national, regional and multilateral efforts to deal with capital volatility and prevent crisis contagion.

However, bank levy, the core of the disputes, was not elaborated in detail in the communique, only endorsed as a need for a fair and substantial contribution towards paying for any burdens to repair the banking system or fund resolution.

【1】 【2】 【3】 【4】 【5】


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Giant red lantern lights up in Tiananmen Square to celebrate the coming National Day on Oct. 1. (Xinhua/Li Xin)
  • A ceremony is held in Taipei, southeast China's Taiwan, on Sept. 28, 2011, to commemorate the 2,562nd birthday of Confucius (551-479 BC), a Chinese thinker, educationist and philosopher. (Xinhua/Wu Ching-teng)
  • The world's first Boeing 787 Dreamliner for delivery arrives at Haneda airport in Tokyo, capital of Japan, on Sept. 28, 2011. The Boeing 787 Dreamliner, whose buyer is All Nippon Airways (ANA), will implement a flight of ANA on Oct. 26 from Tokyo's Narita Airport to Hong Kong in south China. (Xinhua/Ji Chunpeng)
  • A Libyan National Transitional Council (NTC) fighter shows what is believed to be human jawbone found inside a mass grave near Abu Salim prison in Tripoli, Libya, Spet. 27, 2011. The NTC on Sunday said they had found a mass grave containing the bodies of 1,270 people killed by Gaddafi's security forces in a 1996 massacre at Abu Salim prison in southern Tripoli. (Xinhua/Li Muzi)
  • Rescue workers and local residents search for survivors after a building collapsed in old Delhi, India, Sept. 27, 2011. At least 10 people were killed and 35 injured when an old three-storey building collapsed. More than a dozen people are still feared trapped under the debris, police said. (Xinhua/Partha Sarkar)
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
Hot Forum Discussion