Group of Seven countries will discuss how to further strengthen the global financial system when their finance chiefs meet this week, according to the host nation.
(Bloomberg) — Group of Seven countries will discuss how to further strengthen the global financial system when their finance chiefs meet this week, according to the host nation.
Japanese Finance Minister Shunichi Suzuki suggested Tuesday that the expansion of social networking services and Internet banking partly influenced the recent bank failures in the US.
The nations will hold discussions while taking the current financial environment into account, Suzuki told reporters, ahead of the meeting in Niigata, Japan.
Since early March, four regional lenders have collapsed in the US, including First Republic Bank, the second-biggest bank failure in US history.
The US regional banking system is at risk and the regulator’s failure to update and expand its insurance regime has “hammered more nails in the coffin,” according to Pershing Square’s Bill Ackman.
In April G-7 countries vowed to stand ready to take appropriate action to maintain the stability and resilience of the global financial system.
The Nikkei newspaper reported Tuesday that the G-7 ministers will outline plans to prevent the kind of bank runs that led to the collapse of Silicon Valley Bank.
Separately, Suzuki listed various global economic challenges that will also be discussed in Niigata, including support for Ukraine and debt problems in low- and middle-income countries. Climate change, global health, and economic security are also on the agenda, he said.
“I want this meeting to be a success in terms of cooperation with other countries,” he said.
–With assistance from Emi Urabe.
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