Resources for Basel II Capital Accord (Basel II)

G7 finance chiefs wary of overreaction

www.euro2day.g

G7 finance ministers will today discuss a co-ordinated regulatory response to weaknesses in the global financial system, but will resist a common prescription for shoring up their own economies, according to senior officials from several Group of Seven countries.

Referring to financial market turmoil unleashed by the subprime crisis, Alistair Darling, the UK's chancellor of the exchequer, who was in Tokyo for the finance ministers' meeting, said the international community needed to "tighten up procedures" to "make it less likely that problems on anything like this scale would develop again".

Mr Darling told the FT: "I am confident that we will take a substantial step forward in strengthening the surveillance systems ... Where co-ordinated action is found to be necessary we will do all that is needed. We are all after the same thing and this is to restore stability." He said better early-warning systems and possibly better regulation of ratings agencies would be needed to ensure that banks lent responsibly and transparently.

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