G7 finance ministers have warned of “heightened uncertainty” surrounding the global economy and the need to address regulatory gaps in the banking system in the wake of financial sector turmoil.“The global economy has shown resilience against multiple shocks,” finance ministers of the world’s most advanced economies said in their final communique after a three-day ministerial meeting in Japan on Saturday.
“Nevertheless, we need to remain vigilant and stay agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook.”
The finance ministers also noted the need to fill “data, supervisory and regulatory gaps” in the banking system that have come to light following the March collapses of Silicon Valley Bank and Signature Bank and the failure of First Republic in recent weeks.