The finance ministers and central bank governors of the Group of 10 met in Prague on September 24. The meeting was chaired by Kaspar Villiger, the Minister of Finance from Switzerland. Ministers and governors took note of reports from Henk Brouwer, Chair of the Deputies of the Group of 10; Mario Draghi, Chairman of Working Party 3 of the Organization for Economic Cooperation and Development; and Andrew Crockett, General Manager of the Bank for International Settlements.
Ministers and Governors exchanged views on the process of consolidation that is taking place in the financial sector. They noted that this process has generated institutions that are larger and more complex, with a geographical reach and a range of products that are much wider than in the past. They recognized that financial sector consolidation could have implications for financial risk, monetary policy, competition, and payments and settlements. They welcomed the efforts of their deputies to enhance official understanding of consolidation in the financial sector. Ministers and governors noted that the process of financial sector consolidation must be understood in the context of developments in the global economy.
Ministers and governors considered the efforts being made to strengthen the functioning of the international financial system. In particular, they supported the IMF in implementing the operational guidelines agreed in April in the context of the framework for involving the private sector in forestalling and resolving financial crises set out by the international community a year ago. They noted the importance of constructive dialogue between the private and official sectors and, in particular, communication between and among debtors and their creditors.
The Minister of Finance from Germany, Hans Eichel, was elected Chair of the Group of 10 for one year.