World leaders agree on immediate moves to stabilize financial markets, support economic growth
Source: Xinhua | 11-16-2008 09:43Special Report: Global Financial Crisis
Leaders at the G-20 summit have agreed to an action plan of immediate and medium-term measures to cope with the financial and economic woes now gripping the world. They have promised to do whatever is needed to protect the global financial system from collapsing under the weight of a massive economic downturn.
|Chinese President Hu Jintao (5th R, front), U.S. President|
George W. Bush (6th R, front) and other leaders from the
Group of Twenty (G20) members pose for a group photo during
the G20 Summit on Financial Markets and the World Economy
in Washington, U.S., Nov. 15, 2008. (Xinhua/Li Xueren)
G20 leaders agreed to take rapid action to stabilize financial markets and restore growth in the worsening global economy.
Immediate action will be taken before March 31st, 2009.
The plan includes addressing weaknesses in accounting and disclosure standards, enhancing the standards of credit rating agencies, and enhancing guidance to strengthen banks' risk management practices.
The leaders have backed enhancing regulatory cooperation between jurisdictions internationally and regionally, and establishing supervisory colleges for all major cross-border financial institutions. They also support steps to strengthen cross-border crisis management arrangements.
Medium-term measures include working toward the objective of creating a single high-quality global standard for accounting.
G20 leaders agreed to enhance risk disclosures by financial institutions, undertake a "Financial Sector Assessment Program" report and support the transparent assessments of countries' national regulatory systems.
Other medium-term measures include developing robust and internationally consistent approaches for liquidity supervision, awareness and ability to respond rapidly to evolution and innovation in financial markets and products.
The leaders agreed to monitor substantial changes in asset prices and their implications for the macro-economy and the financial system... and implement national and international measures to protect the global financial system from uncooperative and non-transparent jurisdictions that pose risks of illicit financial activity.
The action plan also calls for other medium-term measures like greater voice and representation for emerging and developing economies in the Bretton Woods institutions, and strengthening of the IMF's role in providing macro-financial policy advice.