Source: China Daily

04-03-2009 09:12

Special Report:   Global Financial Crisis
Special Report:   G20 Summit in London

LONDON: The G20 leaders had agreed to create a new supervisory body to flag potential problems in the global financial system, British Prime Minister Gordon Brown said yesterday.

The summit host said the G20 will create a new financial stability board to ensure cooperation across frontiers, to spot risks to the world economy and - together with the International Monetary Fund (IMF) - provide "the early warning mechanism that this new global economy needs".

He said it was essential that the world did everything necessary to "rebuild trust" and make sure "a crisis such as this" never happens again.

G20 leaders agreed that blacklists of tax havens should be published and vowed to crack down on them.

French President Nicolas Sarkozy and Brown said that Organization for Economic Cooperation and Development would circulate a list of countries that serve as tax havens.

Sarkozy, who has advocated tougher rules against tax havens, said: "The time of banking secrecy has passed."

Leaders like Sarkozy and German Chancellor Angela Merkel have been calling for tighter regulations on the banking sectors, which they believe are main culprits of the ongoing financial crisis.