G20

G20 BACKS DRIVE FOR CRACKDOWN ON BANKS

Leaders of the world's largest economies insisted yesterday on implementing tough capital rules, to force banks to hold sufficient buffers to guard against a future crisis, but they signalled a delay before they take effect.

At the Toronto summit, the Group of 20 pledged that banks must hold sufficient capital to withstand future losses in a crisis as severe as that which brought the world's leading banks to their knees in 2008.

Seeking to inject new political momentum into the ongoing technical discussions, the G20 communiqué stated: “The amount of capital will be significantly higher and the quality of capital will be significantly improved when the reforms are fully implemented.”

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