We are determined to enhance our cooperation and work together to restore global growth and achieve needed reforms in the world's financial systems.Granted, this is not my area of expertise. I see much discussion of regulation, transparency, standards and oversight. That seems Good to me. Not a word about currencies. That also seems Good to me. Unless I broke it through overuse, my cynicism-meter did not fly over into the red zone. Surely I am missing something.
Policy-makers, regulators and supervisors, in some advanced countries, did not adequately appreciate and address the risks building up in financial markets, keep pace with financial innovation, or take into account the systemic ramifications of domestic regulatory actions.
Regulation is first and foremost the responsibility of national regulators who constitute the first line of defense against market instability. However, our financial markets are global in scope, therefore, intensified international cooperation among regulators and strengthening of international standards, where necessary, and their consistent implementation is necessary to protect against adverse cross-border, regional and global developments affecting international financial stability.
Financial institutions must also bear their responsibility for the turmoil and should do their part to overcome it including by recognizing losses, improving disclosure and strengthening their governance and risk management practices.
In view of the role of the G20 in financial systems reform, we will meet again by April 30, 2009, to review the implementation of the principles and decisions agreed today.
We recognize that these reforms will only be successful if grounded in a commitment to free market principles, including the rule of law, respect for private property, open trade and investment, competitive markets, and efficient, effectively regulated financial systems.
We underscore the critical importance of rejecting protectionism and not turning inward in times of financial uncertainty.