G20 Finance Ministers and Central Bank Governors recommitted at their meeting today to pursue the reform of the financial sector. As part of this, the G20:

 

• will implement fully the Basel III new standards for banks within the agreed timelines;
 

• calls for completion by the November 2011 G20 Summit of ongoing policy work on systemically important financial institutions as scheduled in the FSB work programme for 2011;
 

• will implement in an internationally consistent and non-discriminatory way the FSB’s recommendations on OTC derivatives and on reducing reliance on credit rating agencies’ ratings;
 

• urged all jurisdictions to implement fully the FSB principles and standards on sound compensation practices, and looks forward to ongoing monitoring, including the publication of the FSB’s second peer review in mid-2011;
 

• looks forward also to the preparation by the FSB by mid-2011 of recommendations on regulation and oversight of the shadow banking system.

In addition, the G20 will receive in October two reports to be written jointly by the FSB with other international institutions: one with the Bank for International Settlements and International Monetary Fund (IMF) on macroprudential frameworks; and the other with the IMF and World Bank on financial stability issues in emerging market and developing economies.
 

Moreover, the FSB and the Organisation for Economic Co-operation and Development have been asked by the G20 to work with other relevant international organisations to develop common principles on consumer protection in the field of financial services by October.
 

The FSB will continue to monitor progress on consistent international implementation of financial reforms, including through its peer reviews, and regularly report to the G20.

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