Banking systems in G20 countries safe: CEA

Most members of G20 countries participated in a discussion on financial stability risks at the concluding day of the third G20 Framework Working Group (FWG) meeting, according to V. Anantha Nageswaran, Chief Economic Advisor.

Most members of G20 countries who participated in a discussion on financial stability risks at the concluding day of the third G20 Framework Working Group (FWG) meeting here expressed confidence that their individual country regulations and banking systems were sound, according to V. Anantha Nageswaran, Chief Economic Advisor.

“They do not anticipate any trouble. That was the sentiment that came up quite clearly in this afternoon’s discussion on financial stability,” he told media persons on Wednesday in response to a query on whether the FWG had discussed the reverberations of the US banking fallout.

He said that the FWG was looking into trade-offs encountered by countries in dealing with food and energy insecurity amid the limited policy room while formulating policy response.

“As far as transition pathways are concerned, there is broad agreement on the positive impact that the green transition can have on growth, primarily through increased investment in the long run. However, given the uncertain pace of global transition and the recent supply shocks, we should also be cognizant of the potentially high fiscal costs that climate change and transition policies could entail, the adverse distributional impacts of transition policies and the shorter time frame for implementation,” he said.

More than 75 delegates from G20 member countries, invitee countries and various international and regional organisations participated in the meet. Five sessions on key priority areas including macroeconomic impacts of food and energy insecurity and their implications for the global economy and assessing the macroeconomic risks emerging from climate change and transition pathways were discussed.