2 November 1998

Australia Welcomes G7 Statements on Reforming the International Financial System

The Australian Government welcomes the statements overnight by the G7 Leaders and Finance Ministers and Central Bank Governors on steps for addressing the financial crisis and strengthening the international financial system, the Acting Treasurer, Senator Kemp, said today.

Australia has had, and continues to play, an active role in responding to the crisis and in efforts to reform the international financial system.

Australia participated in the special meeting of Finance Ministers and Central Bank Governors earlier this month which canvassed the measures contained in the G7 Statement. Australian officials were members of the G22 Working Groups which developed the proposals.

The Prime Minister and the Treasurer emphasised the need for results to be achieved urgently in strengthening the international financial system at the International Conference of Banking Supervisors, hosted by the RBA and APRA in Sydney on 21-22 October.

The forthcoming APEC Economic Leaders meeting in Kuala Lumpur will provide an important opportunity for further advancing these reforms and developing support amongst a wider range of countries, including many of the emerging economies most affected by the crisis.

In particular, as indicated by the Prime Minister in his speech to the International Conference of Banking Supervisors, Australia is looking to the APEC Economic LeadersÂ’ Meeting for agreement on action within APEC that will:

  • advance the openness of regional economies and markets;
  • improve economic governance; and
  • strengthen the international financial architecture.

The statements by the G7 give particular recognition to the importance of extending the contribution of the private sector in crisis prevention, management and resolution. This issue is being examined by the Prime MinisterÂ’s Task Force on International Financial Reform, which is chaired by the Treasurer and includes leading private and public sector representatives. The Task Force, which had its inaugural meeting recently, will be making recommendations on how Australia can best further contribute to promoting and extending these reforms.