G7 pledges to take “necessary steps” for financial stability

The G7 promised this Saturday to adopt “the necessary measures” to maintain financial stability and to be “agile and flexible” in its macroeconomic policies to counteract economic uncertainties.

In their joint statement published today, the leaders of the Group of Seven expressed confidence in the resilience of the financial system after its adaptation to “multiple shocks”, such as the COVID pandemic, the Russo-Ukrainian war and inflationary pressure, but pointed to the need to remain “vigilant”.

The G7 pledged to pursue growth-oriented policies and that “support medium-term fiscal sustainability and price stability.”

The powers recognized that “inflation remains high”, but they said that central banks are still “committed” with his policies to stabilize prices.

The multinational forum dedicated a section to the transformation of the financial sector, including bank digitization, which they hope to address in more detail in the future, with the aim of “leverage” the benefits of this innovation and learn “potential risks” that imply to better respond to contingencies.

The G7 has proposed to explore ways to strengthen the current financial system after the recent episode of bankruptcies of several US regional financial institutions and the problems experienced by the Swiss Credit Suisse.

Crypto assets are another of the headaches for the group, which considers that “effective surveillance, regulation and supervision are crucial” to address the risks involved in these activities while supporting “responsible innovation”.

The leaders of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States conveyed their concern about the “serious challenges” on debt sustainability, especially among small and medium-sized economies, and the need to set up organizations to respond in time to potential problems.

Source: EFE