G7 to tackle fight against new financial crises
Group of Seven finance officials gather here on Friday to discuss plans to prevent a repeat of what the IMF chief says is the worst financial crisis since the 1930s Great Depression.
By Agencies |
WASHINGTON: Group of Seven finance officials gather here on Friday to discuss plans to prevent a repeat of what the IMF chief says is the worst financial crisis since the 1930s Great Depression.
The meeting of key finance ministers and central bank governors comes amid increasingly grim forecasts for the international economic outlook, with worries about a global slowdown and a US recession.
Federal Reserve chairman Ben Bernanke said yesterday the current financial crisis requires swift action to improve US market regulation, endorsing a plan by a US task force.
"We do not have the luxury of waiting for markets to stabilise before we think about the future," Bernanke said in a speech, the text of which was released by the Fed.
"Indeed, many of the necessary changes that have been identified, including increasing transparency, improving risk management and attaining better coordination among regulators, could provide important support to the process of normalising our financial markets."
The G7 ministers will weigh a plan drafted by a global group, the Financial Stability Forum (FSF), that would require banks and securities firms to be more transparent in their dealings and boost capital reserves as part of improved risk management to avert future crises.
International Monetary Fund managing director Dominique Strauss-Kahn said yesterday the current global turmoil is the biggest financial crisis since the Great Depression of the 1930s.
"But it is a new kind of crisis," he said at a news conference.
The meeting of key finance ministers and central bank governors comes amid increasingly grim forecasts for the international economic outlook, with worries about a global slowdown and a US recession.
Federal Reserve chairman Ben Bernanke said yesterday the current financial crisis requires swift action to improve US market regulation, endorsing a plan by a US task force.
"We do not have the luxury of waiting for markets to stabilise before we think about the future," Bernanke said in a speech, the text of which was released by the Fed.
"Indeed, many of the necessary changes that have been identified, including increasing transparency, improving risk management and attaining better coordination among regulators, could provide important support to the process of normalising our financial markets."
The G7 ministers will weigh a plan drafted by a global group, the Financial Stability Forum (FSF), that would require banks and securities firms to be more transparent in their dealings and boost capital reserves as part of improved risk management to avert future crises.
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International Monetary Fund managing director Dominique Strauss-Kahn said yesterday the current global turmoil is the biggest financial crisis since the Great Depression of the 1930s.
"But it is a new kind of crisis," he said at a news conference.
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