G-20 finance ministers will meet today in Busan, South Korea, as they seek to repair their banking system regulations through approving new rules concerning lending, capital and risk reduction. They will probably postpone their prior commitment to approving new rules by the end of the current year till economies fully recover from the negative repercussions of the economic recession.
Euro zone finance ministers are worried about financial instability, especially with the debt contagion spreading in the region and the surge in credit default swaps.
While U.S. wants banks to increase their assets holding to improve their balance sheets, European officials are concerned that the rise in reserves would curtail growth. However, there is consensus among global leaders that trimming the sovereign debt is the top priority for governments.