To G20 Ministers and Central Bank Governors

Progress of Financial Reforms

We have sent for your upcoming meeting reports assessing progress in three key areas of reform to create a more resilient global financial system, one that is better able to support long-term economic and employment growth. They cover:

  • Implementation of the Basel III capital and liquidity requirements, supporting the goal of increasing the resilience of banks and banking systems;
  • Implementation of reforms to resolution regimes, supporting the goal of ending "too big to fail";
  • Implementation of OTC derivatives reforms, supporting the goals of reducing systemic risks and creating continuous core markets.

Although important steps have been taken to strengthen the system, we are only part-way through a multi-year financial reform process, whose successful completion will require our continued cooperation and our sustained focus and effort.  It is especially important that, as we seek to reduce systemic risks from interconnectedness, we strive to maintain an integrated global financial system.

A resilient and global system will provide credit most efficiently and support strong, sustainable and balanced global growth.  We need to continue to re-build confidence in the long-term robustness of the global financial system and resist pressures to ring-fence national markets.