HISTORIC PRESS RELEASE : G7 report on strengthening the architecture of the global financial system [May 1998]

The press release issued on 15 May 1998.

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