(Reuters) - Finance ministers from the Group of 20 leading economies (G20) agreed on Saturday to push ahead with extra safeguards for the world’s biggest banks despite some initial opposition. The following are the key points that emerged from a two-day meeting of G20 ministers in Paris.
— Reconfirmed that Basel III bank capital and liquidity rules will be implemented on time from 2013;
— There could be further changes to the liquidity standards during phase in as allowed under review clauses;
— Reaffirmed commitment to more effective oversight and supervision, including regular stress testing of banks building on the Basel Committee’s principles;
— Systemically important financial institutions package (SIFIs) package to be completed for November G20 summit;
— SIFI package to be a comprehensive multi-pronged framework with more intensive supervisory oversight; effective resolution capacity including in a cross-border context;
— SIFI package to contain higher loss absorbency measures through a menu of viable alternatives that may include, depending on national circumstances, capital surcharges, contingent capital and bail-in instruments;
— SIFI measures could also include other supplementary requirements as determined by the national authorities including systemic levies;
— SIFI package initially applicable to global SIFIs and then G20 will move “expeditiously” to cover all SIFIs;
— FSB to prepare recommendations on regulation and oversight of the shadow banking system by mid-2011;
— Shadow banking initiative will “address the risks, notably of arbitrage, associated with shadow banking and its interactions with the regulated banking system”;
— FSB to publish mid-2011 its second peer review of how G20 curbs on bank remuneration are being applied;
— IOSCO asked to develop by mid-2011 recommendations to promote markets’ integrity and efficiency notably to mitigate the risks created by the latest technological developments — a reference to computerized trading, algorithms and high frequency trading;
— FSB’s recommendations on OTC derivatives and reducing reliance on credit rating agencies will be implemented in an internationally consistent and non-discriminatory way”;
— To study underlying drivers of commodity price volatility and challenges posed for consumers and producers and consider possible actions.
— Next meeting to discuss interim report on food security currently being undertaken by the relevant international organizations;
— Next meeting to look at FSB’s recommendations on regulation and supervision of commodity derivatives markets, notably to strengthen transparency and address market abuses;
— IEF, IEA and OPEC gave interim report on improving improve the quality, timeliness and reliability of the Joint Organization Data Initiative Oil;
— IEF, IEA and OPEC to work further on strategies to implement these recommendations;
— IMF and IEF, as well as IEA, GECF and OPEC asked to develop by October concrete recommendations to extend the G20’s work on oil price volatility to gas and coal;
— next G20 meeting to discuss report from IEF, IEA, OPEC and IOSCO on energy price reporting agencies;
— OECD, the FSB and other relevant international organizations to develop common principles on consumer protection in the field of financial services by October.
Reporting by Huw Jones, editing by Mike Peacock