G20: FSB Draghi: Need Reform Momentum To Avoid Future Crisis

LONDON -(Dow Jones)- Signs that the world economy is in a sustainable recovery are becoming clearer, but many underlying problems have yet to be resolved, Indonesia's central bank governor said Friday.

In an interview with Dow Jones Newswires, ahead of a meeting of the Group of 20 industrialized and emerging economies in London, Bank Indonesia Acting Governor Darmin Nasution said he remained "cautious" about the outlook.

"We don't know whether there will be a double dip. Hopefully not. I think we can say the majority opinion now is the recovery is more and more certain," Nasution said.

"But many, several problems in the financial sector haven't been resolved yet. We don't expect that the recovery is there and then all (of the problems are) forgotten about."

Nasution said that Bank Indonesia's decision Thursday to keep interest rates on hold at 6.5% - marking a pause in an easing cycle that began in December - had been the result of "deep consideration."

Asked whether further rates cuts could be ruled out, he said that if there were no significant changes in the data, the central bank would tend not to alter policy.

-By Natasha Brereton, Dow Jones Newswires, +44-20-7842-9254, natasha.brereton@dowjones.com

(END) Dow Jones Newswires

September 04, 2009 12:59 ET (16:59 GMT)

G20: BOJ Gov: Discussed General Thinking Of Exit Strategy

LONDON -(Dow Jones)- Bank of Japan Governor Masaaki Shirakawa said Saturday that he exchanged general views with other nations over how and when to exit unorthodox monetary and fiscal measures but he didn't give a clear indication on whether or not Japan will need to terminate these steps in the immediate future.

The Group of 20 industrial and developing nations "exchanged opinions about the timing and ways to terminate extraordinary measures many countries have taken and what kind of points we must pay attention to when exiting," Shirakawa told reporters after attending a G20 meeting of finance ministers and central bank heads.

As for a cap on bonus payments to bankers, Senior Vice Finance Minister Wataru Takeshita said, at a joint press conference with the BOJ chief, that Japan will push efforts to avoid excessive risk taking.

   -By Megumi Fujikawa, Dow Jones Newswires; 813-6895-7559; megumi.fujikawa@dowjones.com

(END) Dow Jones Newswires

September 05, 2009 12:52 ET (16:52 GMT)

G20: FSB Draghi: Need Reform Momentum To Avoid Future Crisis

LONDON -(Dow Jones)- General financial conditions are improving but financial reform momentum needs to continue in order to ensure that the recent financial crisis doesn't happen again, the chairman of the Financial Stability Board said Saturday.

Financial "conditions are improving and with their improvement, the banks profitability is improving," Mario Draghi said at a press briefing after a meeting of finance ministers from the group of 20 industrial and developing nations. Draghi is also an ECB governing council member and governor of the Bank of Italy.

He said that although financial conditions were improving, "more needs to done to make the financial system resilient."

He said the G20 finance ministers backed the need to keep the momentum going on financial reform. He said the FSB will be charged with providing guidelines on improving the quality of capital held by financial institutions and providing guidelines on compensation.

On banker compensation, he said the FSB would be focused on tackling the structure rather than the level of compensation