Group Of Twenty Controls Risks Through Big Banks

The finance ministers of the group of twenty (G20) and the governor of the central bank adopted the new rules at the meeting held in Paris on 15, which will strengthen the supervision of systemic financial institutions.

Goldman Sachs and HSBC, which are considered to have systemic influence, will be required to increase their capital.

In a statement issued after the meeting, the finance ministers and central bank governors of the group of twenty said that the conference adopted a comprehensive framework aimed at reducing the risk of systemic financial institutions on the same day, including strengthening supervision, establishing cross-border cooperation mechanisms, defining Bankruptcy Rescue procedures, and increasing the need for big banks.

The meeting that day made it clear that banks with systematic influence such as Goldman, HSBC, Deutsche Bank and J.P. Morgan will be asked for extra

According to the Basel agreement III, by 2013, the minimum core capital adequacy ratio of global financial institutions will rise to 7%, which means that the core capital adequacy ratio of banks with systemic influence should be increased to 8% to 9. 5%.

French economy, finance and Industry Minister Francois Baroin said on that day that the group of twenty will publish a list of influential banks during the summit meeting held in from November 3rd to 4th.

In July of this year, the Basel Banking Regulatory Commission has identified 28 furniture financial institutions with systemic influence, but no specific list has been published.