G-7 finance chiefs vow to ensure financial stability

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NIIGATA, Japan – Finance chiefs of the Group of Seven nations vowed Saturday to take appropriate action to ensure financial stability after a series of U.S. bank failures raised concern, asserting that the financial system remains resilient.

In a joint statement after their three-day meeting in Niigata, northwest of Tokyo, the G-7 finance ministers and central bank governors said they will continue to monitor financial sector developments with regulators.

The G-7 also said it will aim to launch efforts to build robust supply chains with developing nations by the end of the year, apparently with China in mind.

The gathering was overshadowed by concern following the failure of three U.S. regional banks and the possibility of a default by the United States amid a political deadlock over raising its debt ceiling.

“We will continue to work closely with supervisory and regulatory authorities to monitor financial sector developments and stand ready to take appropriate actions to maintain financial stability and the resilience of the global financial system,” the joint statement said.

The finance chiefs reiterated their unwavering support for Ukraine and pledged to counter any attempts by Russia to circumvent sanctions imposed over its invasion.

“We call for an immediate end of Russia’s illegal war against Ukraine, which would clear one of the biggest uncertainties over the global economic outlook,” the G-7 said.

The G-7 took the view that the global economy remains “resilient” despite multiple shocks from the COVID-19 pandemic, Russia’s war and surging inflation.

“We need to remain vigilant and stay agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook,” the document said.

Japanese Finance Minister Shunichi Suzuki attends a press conference following a three-day meeting of the Group of Seven finance chiefs in Niigata, northwest of Tokyo, on May 13, 2023. (Kyodo) ==Kyodo

China is not a G-7 member but figured in the talks as the finance chiefs debated how to address debt vulnerabilities among developing nations and build better supply chains critical to achieving green growth. Beijing is known for its lending practices that often imperil developing debtor nations.

A joint meeting with the G-7 health ministers gathering in Nagasaki, southwestern Japan, is also scheduled for the day to build a financing mechanism to better respond to and brace for pandemics.

The G-7 comprises Britain, Canada, France, Germany, Italy, Japan and the United States, plus the European Union.

During the latest round of talks, the G-7 chiefs saw the need to guide macroeconomic policy in a “nimble and flexible” manner, an official involved in the talks said.

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