G7 report on Strengthening the Architecture of the Global Financial System

G7 Heads today discussed and endorsed the attached report prepared by their Finance Ministers on Strengthening the Architecture of the Global Financial System.

The Asian financial crisis has revealed the need to address potential weaknesses and vulnerabilities in the global financial system. In particular, G7 Heads are conscious of the serious human and social consequences of such crises when they occur.

The report sets out proposals in five key areas, to reduce the risks of crises recurring in future and to improve our techniques for responding to crises when they do occur:

i) increasing transparency

ii) helping countries prepare for integration into the global economy and for free capital flows.

iii) strengthening national financial systems

iv) ensuring that the private sector takes responsibility for its lending decisions.

v) enhancing further the role of the International Financial Institutions and cooperation between them

Notes for editors

At the February meeting of the G7 Finance Ministers, the "Birmingham Process" was launched. Ministers announced that they would undertake a consultation process with emerging markets, other countries and representatives of the private sector, in order to put forward proposals on global financial architecture to the G7 Summit. The report is the outcome of that consultation process.

2. Copies of this report can also be obtained from the UK Delegation office in Birmingham on 0121 335 8493 (whilst the summit is in progress).