After a meeting of the finance ministers and central bank governors of the G20 in Washington, Finance Minister Mihály Varga said international development banks needed to play a bigger role in managing crises.
Minister Varga, who represented the presidency of the Council of the European Union at the meeting, said the G20 finance ministers and central bank governors had approved the rollout of a three-pillar proposal on enhancing international development banks
Outlining the pillars of the proposal, he said multilateral development banks needed to expand their financing capacity while ensuring their long-term financial sustainability. They must also make their financing and consulting services more accessible, while stepping up the mobilisation of private capital and national resources. The third pillar focuses on increased efficiency by boosting geographical distribution and improving knowledge of local needs, he added.
The participants also discussed challenges facing the global financial sector.
Minister Varga noted that international financial systems had proven resilient even when financial stability was under threat during the pandemic and after the outbreak of the war in Ukraine. That stability can be preserved with the help of development of cross-border payments, regulation of digital innovations and financial integration, he added.
He said the G20 was committed to developing a framework for the use of cryptocurrencies.