By Tetsushi Kajimoto
TOKYO (Reuters) – Japan and Germany agreed on Saturday to coordinate closely over a financial panic sparked by Western bank troubles while closely monitoring global markets and economies, Japan said. An official from the Ministry of Financial Institutions told Reuters.
Agreement reached during 45 minutes of talks between Japanese Finance Minister Shunichi Suzuki and German Finance Minister Christian Lindner as they visit Tokyo for bilateral government consultations .
Global bank stocks have been battered since the collapse of Silicon Valley Bank and Credit Suisse being forced to tap $1 billion in central bank funds, raising questions about other weaknesses in the financial system.
As German Chancellor Olaf Schulz and Japanese Prime Minister Fumio Kishida begin their first government talks, cabinet members from both countries will meet to discuss ways to ensure economic security.
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According to Japanese officials, Suzuki told Lindner: “Risk aversion has already emerged in financial markets. We will closely monitor developments and coordinate with the central bank and overseas authorities.” “Japan’s The financial system remains generally stable.”
Both sides agreed on the need to closely monitor financial developments and coordinate as needed, the official said, without elaborating further.
Japan this year succeeds Germany as the chairman of the Group of Seven, which also includes the UK, Canada, France, Italy and the US
Suzuki and Lindner agree to put sanctions on Russia above its invasion of Ukraine and support for Kiev, while working to agree and implement a global digital tax, steadily address developing country debt problems, in line with the
framework , officials said.
They agreed on the need to strengthen supply chains as an element of economic security.
