The International Banking Federation pledged its support to G20 leaders on the eve of their meetings in Washington to continue to cooperate in efforts to rebuild global financial stability.
Members of the IBFed said there needed to be a co-ordinated global approach to guide economies back to health. IBFed Chairman David Bell promised banks would work closely with governments, central banks and regulators but warned that now was not the time to retrench and look solely to national or sectional interests.
Mr. Bell said:
"Banks everywhere are working with governments, central banks and regulators to find solutions to the world economic crisis. The current situation has taught us that markets are inevitably and inextricably linked and action in one country will be felt in economies half a world away. We must all guard against implementing plans which may work in one place but will have an unforeseen impact elsewhere.
"This is a global crisis which requires collaboration and cooperation to reach global solutions, but policy makers need to avoid piecemeal regional or purely national responses which threaten to distort international trade and undercut its benefits.
“Financial stability can best be restored if countries, authorities and banks work together to achieve shared objectives of restored liquidity, capital strength, stability, transparency and confidence. We need better and more effective regulation but we must resist knee-jerk responses where the impact is balanced against the real risks to the wider economy that would come if banks had less money to lend businesses and individuals."
