G20 meeting places spotlight on financial crisis, regulations

As G20 finance ministers and central bankers meet in Mexico City, the ongoing European crisis remains the focus of attention. Of particular note is whether non-European nations will support additional funding for the International Monetary Fund. The G20 has served as a pseudo-organizing committee to formulate a response to the financial crisis that began in 2008.

China, Japan and other G20 nations, however, have told Europe that it needs to act first by bolstering its own bailout funds. The IMF wants to raise as much as $600 billion to cope with the ramifications of the euro zone debt crisis.

While officials are concerned about finding the funds for the IMF, bankers aired their concerns about the impact of the regulatory response to the crisis.

“The Volcker rule will diminish liquidity in the exchanges. It’s an issue that will affect and is affecting most of the exchanges around the world,” Luis Tellez Kuenzler, chief executive officer of Bolsa Mexicana de Valores SAB, Mexico’s Stock Exchange told Businessweek.

Many assert that additional regulations could harm liquidity and constrain economic growth amid Europe’s debt crisis.

 

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