G30 urge policymakers to strengthen financial regulation and supervision
12 October 2010
The G30 has released a report drawing policymakers' urgent attention to the need for strengthening system-wide regulation and supervision, in order to provide more robust macro-prudential frameworks that prevent another crisis and secure a stable financial system.
The report stressed that a special toolkit that promotes economic stability and is able to reduce the damage of future economic downturns would address leverage, liquidity, credit and supervision issues. Some of the elements of the toolkit include higher capital requirements, stress tests and loan-to-value ratios. The call for strengthening regulation and supervision comes ahead of the G20 Summit in Seoul in early November, and is intended to promote international political support for macro-prudential initiatives.
© G30
