Japan Nikkei (gated) reporting on whats expected from the Group of Seven finance ministers and central bank chiefs after the three-day meeting ending Saturday in the Japanese city of Niigata.
- G7 to craft plans for addressing bank runs of the type that led to the collapse of Silicon Valley Bank
- a more robust response to bank runs is seen as necessary when rumors can spread through social media and deposits can be withdrawn instantly via internet banking
- ministers will highlight the importance of analyzing the causes and learning the lessons from the failures of SVB and First Republic Bank
- will review whether capital regulations are functioning effectively
- G-7 envisions responses that quickly provide funds when a bank suffers a sudden outflow of deposits, as well as expanded deposit insurance
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G7 finance ministers and central bankers will meet in Niigata, Japan, from May 11-13.
Nigata looks nice.
