'Europe must fix its banks to ensure recovery'

BUSAN: Europe needs to fix its banks and some countries must take bold action to close their budget gaps to prevent the global recovery from derailing, Canadian Finance Minister Jim Flaherty said on Friday.

Flaherty said concerns about the European debt crisis had dominated conversations among G20 policy makers even before they began formal meetings in Busan, South Korea.

"It is essential to ensure continued recovery that Europe fix its banks. It is essential that certain vulnerable European nations follow through with major fiscal consolidation, and get the job done," Flaherty told reporters.

Flaherty said he saw no evidence of a G20 agreement on a global bank tax, and that the group might agree to delay implementation of new capital rules for banks.