Financial regulation
• A new Financial Stability Board, with a strengthened mandate, will replace the Financial Stability Forum
• Financial regulation and oversight will be extended to all financial institutions, instruments and markets
• This includes bringing hedge funds within the global regulatory net for the first time
• Members are committed to implementing tough new rules on pay and bonuses at a global level
• International accounting standards will be set
• Credit rating agencies will be regulated in order to remove their conflicts of interest
• A common approach to cleaning up banks’ toxic assets has been agreed
TAX HAVENS
Tax Havens
• There will be sanctions against tax havens that do not transfer information on request
• The Organisation for Economic Cooperation and Development has published a list of countries assessed by the Global Forum against the international standard for exchange of tax information
International Monetary Fund
• Resources available to the International Monetary Fund will be trebled to $750bn
• This includes a new overdraft facility, or special drawing rights allocation, of $250bn
• Additional resources of $6bn from agreed IMF gold sales will be made available for lending to the poorest countries
• The G20 also supports increased lending to the world’s poorest countries of at least $100bn by the multilateral development banks
GLOBAL TRADE
Global trade
• There will be a commitment of $250bn of support for trade finance made over the next two years
• This will be made available through export credit and investment agencies, as well as through multilateral development banks
• National regulators will be asked to make use of available flexibility in capital requirements for trade finance
Protectionism
• The G20 has pledged to resist protectionism
• There will be a commitment to naming and shaming countries that breach free trade rules
• The G20 will notify the World Trade Organization of any measures that constrain worldwide capital flows
• The G20 has called on the WTO to monitor and report publicly on these undertakings on a quarterly basis
FISCAL STIMULUS
Financial Stimulus
• Although there is no new fiscal stimulus, Gordon Brown said G20 countries are already implementing “the biggest macroeconomic stimulus the world has ever seen” – an injection of $5tn by the end of next year
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