The world’s banks can help governments move on from the global financial crisis but excessive regulation needs to end, business leaders say.
ANZ Bank boss Mike Smith, who is head of the Financing Growth Taskforce for the B20 summit of world business leaders, said banks were ready to support growth.
“All governments want growing economies, all governments want stable financial systems,” Mr Smith told a media briefing ahead of the start of the B20 summit in Sydney on Wednesday.
While 2008 crisis had “left a legacy of stagnant growth and damaged public finances”, Mr Smith said subsequent reforms had laid the foundations of a more resilient global financial system.
Financiers are now preparing a plan that will be part of a list of recommendations from business to the G20 government leaders.
“Our action plan will be focused on supporting the G20 governments moving from the GFC crisis response to helping create economic growth and job creation,” Mr Smith said.
However, the finance taskforce “will be calling on the G20 to ensure that the post-crisis regulation in financial markets does not impede legitimate business activity”.
“I’m not pre-empting things by saying the taskforce want the G20 to pause, take stock and align global regulation,” Mr Smith said.
He said the financial services sector had lost much trust during the GFC, and relationships with governments, particularly in Europe, were adversely affected.
However, the issue was “not just about banks”, he said.
“It’s one thing for a bank to complain about regulation, it’s another thing for a corporate to say ‘look I’m not able to get finance because of this regulation that’s being imposed on the banks’,” he said.
The B20 comprises heads of business from countries that make up the G20 – including China, the United States, the United Kingdom, Germany, Canada and France.