G20: Financial sector should make a fair and substantial contribution

08 June 2010

G20 members agreed that the financial sector should contribute to the costs, G20 members could not agree on principles for an international taxation scheme as called for by the IMF, nor did they find minimum common ground for strengthening the Basel II Framework.

G20 members agreed on their meeting in Korea that the financial sector should pay for any burdens associated with government intervention. However, ministers could not agree on principles for an international taxation scheme as called for by the IMF. Nor did they find minimum common ground for strengthening the Basel II Framework regulating bank loans.

 

G20 Finance Ministers and Central Bank Governors agreed the financial sector should make a fair and substantial contribution towards paying for any burdens associated with government interventions, where they occur, to repair the banking system or fund resolution.

 

They are also committed to accelerate the implementation of strong measures to improve transparency, regulation and supervision of hedge funds, credit rating agencies, compensation practices and OTC derivatives in an internationally consistent and non-discriminatory way.

 

G 20 members further agreed on:

Ø       greater transparency and further strengthening of banks’ balance sheets and better corporate governance of financial firms

Ø       to reach agreement on stronger capital and liquidity standards

Ø       to reduce moral hazard associated with systemically important financial institutions

Ø       to get to a single set of high quality, global accounting standards

Ø       to apply measures and mechanisms to address non-cooperative jurisdictions

 

Full communiqué

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