FROM THE OFFICE OF PUBLIC AFFAIRS

Finance Ministers and Central Bank Governors from a number of economies from around the world¹ met in Washington on April 16 to examine issues related to the stability of the international financial system and effective functioning of global capital markets. The Managing Director of the International Monetary Fund, President of the World Bank, General Manager of the Bank for International Settlements, Secretary General of the OECD, and the Chairmen of the Interim and Development Committees also attended the meeting.

The Ministers and Governors welcomed the opportunity to gather on an informal basis to discuss key issues facing the global economy. They noted the particular value of sharing diverse experiences in order to deepen their understanding of the functioning of the international economy and financial markets.

In their discussion, Ministers and Governors emphasized that sound domestic policies are fundamental to healthy and robust national economies and financial sectors and increasingly to the prospects for other countries and the world economy as a whole. They emphasized the benefits of greater integration and globalization but also noted that this process brings new risks, making it more essential than ever to have both good domestic policies and a strong international financial system in place.

Ministers and Governors agreed that it is critical to strengthen the international financial system in order to make it more resilient and to enable countries to benefit more fully from globalization. They agreed on the importance of action in three key areas: increased transparency and disclosure; strengthening financial systems and market structures; and appropriate burden-sharing between the official and private sectors in times of crisis. They announced the formation of working groups to contribute to the international dialogue on how to proceed in these areas. These working groups will consult and cooperate with others in the international community considering similar issues. Ministers and Governors asked that the groups provide reports on their progress in the autumn that could be taken up in discussions in international fora.