Statement of G-7 Finance Ministers and Central Bank Governors

19 October 2007

In a statement of the G-7 Finance Ministers and Central Bank Governors declared that recent financial market turbulence, high oil prices, and weakness in the US housing sector will likely moderate economic growth. “Following recent global market turbulence, the functioning of financial markets is improving”, it was stated. “Our response to recent financial turbulence must be based on full analysis of its causes”, Finance Ministers and Governors continued. “We expect market participants to address many of the shortcomings that were exposed by recent events.”

 

They also asked the Financial Stability Forum (FSF) to analyze the underlying causes of the turbulence and offer proposals in the areas of liquidity and risk management; accounting and valuation of financial derivatives; role, methodologies and use of credit rating agencies in structured finance; and basic supervisory principles of prudential oversight, including the treatment of off-balance sheet vehicles.

 

Full statement

See also statement Paulson

 

 

© Graham Bishop