G7 finance representatives agreed today creating a new paradigm to diversify global supply chains and address loopholes in banking legislation 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 Japan’s west coast city of Niigata today.
The G7 considers the current financial system to be sufficiently resilient after the reforms introduced as a result of the 2008 global crisis, but advocated continuing to monitor the development of the sector and assured its members would be “ready to take appropriate measures to protect it”. stability financial”.
After a series of recent collapses in financial institutions including Silicon Valley Bank (SVB) and Swiss Credit Suisse, the structuring of the current financial system was one of the key points in the three-day talks between the finance heads.
The G7 favored efforts to “draw lessons learned” from the incident and prioritize future work “to improve financial security”, including the study of “vulnerabilities in non-bank financial intermediation” and the establishment of common standards. .
Along with the other participants of the meeting, such as the European Commission, the World Bank or the International Monetary Fund, the financial authorities of the G7 came to the fore among their priorities. transform supply chains. “We recognize the urgent need to address existing vulnerabilities in highly concentrated supply chains,” for key products in some countries, they said. Partners, “diversification of supply chains” protect energy security and help maintain stability In the meeting titled “macroeconomics”, they announced that they are working on an initiative on this subject with countries outside the group, which is planned to be launched at the end of the year.
Although the country is not explicitly mentioned in the document, the G7 aims at this diversification. end domination and addiction With China as a supplier of some key products in terms of energy and technology, this was manifested by disruptions in the chain as a result of the covid-19 outbreak.