G7 Finance Ministers: "Appropriate Actions Needed for Financial Stability... Systems Must Be Strengthened"

The finance ministers and central bank governors of the Group of Seven (G7) emphasized the need to strengthen the financial system, stating that appropriate actions can be taken to ensure the stability of the financial system.

[Image source=EPA Yonhap News]

According to the Nihon Keizai Shimbun and Kyodo News on the 13th, the G7 finance ministers and central bank governors confirmed this position in a joint statement adopted at the meeting held over three days in Niigata City, Niigata Prefecture, Japan, and pledged to address the gap between banking system regulation and supervision in the digital age.

In the statement, they said, "We are prepared to take appropriate actions to monitor trends in the financial sector in close cooperation with supervisory and regulatory authorities, and to maintain financial stability and the resilience of the global financial system," reaffirming that "the financial system remains robust."

Ichiro Suzuki, Japan’s Finance Minister and chair of the meeting, said at a press conference, "We will review the matters that need to be addressed first to strengthen the financial system."

Kyodo News reported that at this meeting, voices calling for strengthening the financial system surged, considering cases such as the bankruptcy of the U.S. Silicon Valley Bank (SVB), where a large-scale withdrawal occurred after crisis news spread through social networking services (SNS).

The G7 finance ministers also agreed on the need to strengthen financial sanctions against Russia, which invaded Ukraine.

In their statement, they said, "We will continue to respond to Ukraine’s urgent funding needs and support neighboring countries and those severely affected."

They also warned, keeping in mind countries like China that are not cooperative with sanctions against Russia, that "we will oppose all attempts to evade sanctions and cause harm."

Regarding virtual currencies, they emphasized the importance of effective regulation and supervision.

They also agreed to continue discussions to create a new form of organization to strengthen supply chains in the decarbonization sector in cooperation with developing and emerging countries.

The G7 discussed emerging country debt issues with invited countries including South Korea, India, Indonesia, Singapore, Brazil, and Comoros.

This content was produced with the assistance of AI translation services.