2023-05-13 06:26:32
The G7 finance representatives agreed today create a new paradigm to diversify global supply chains and address the banking regulatory loopholes in light of the recent collapse of various financial institutions. “We will address gaps in the data, supervision and regulation of the banking system,” the group’s finance ministers and central bank governors said in a joint statement released after their meeting in the west coast city of Niigata today. from Japan.
The G7 considers that the current financial system is sufficiently resilient after the reforms introduced as a result of the 2008 global crisis, but advocated continuing to monitor the evolution of the sector and assured that its members will be “ready to take the appropriate measures to maintain stability financial”.
The configuration of the current financial system has been one of the key points in the three days of talks between the heads of Finance following the recent series of collapses of financial institutions, including Silicon Valley Bank (SVB) and the Swiss Credit Suisse.
The G7 was in favor of the efforts “to extract the lessons learned” from the episode and to prioritize future work “to improve financial security”, including the study of “vulnerabilities in non-bank financial intermediation” and the establishment of common standards. .
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The financial authorities of the G7, together with other participants in the meeting such as the European Commission, the World Bank or the International Monetary Fund, also highlighted among their priorities transform supply chains. “We recognize the urgent need to address existing vulnerabilities within highly concentrated supply chains” in certain countries for key products, they said. The partners consider that “the diversification of supply chains can contribute to safeguard energy security and help maintain stability macroeconomics”, and they announced that they are already working on an initiative in this regard together with countries outside the group whose launch is scheduled for the end of the year.
Although the document does not mention the country expressly, the G7 seeks with this diversification end dominance and dependency of China as a supplier of certain key products from the energy and technological point of view, which was evident with the disruptions in the chain as a result of the covid-19 pandemic.
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