G20 leaders have been urged by Britain banks and others across the globe to not assemble an unrealistic and artificial timeline for reform just days ahead of an important meeting this weekend. A G20 Summit is taking place this weekend in Canada with banking reform being the main topic of discussion.

Stephen Green, Chairman of HSBC and the (BBA) or British Banker’s Association said, "The progress made by the G20 has been impressive but it has now reached a critical juncture." This was one comment made in a letter to UK Prime Minister David Cameron. He continued, "We encourage you to press your fellow leaders to commit to the coordinated implementation of measures, to maintain the openness of their markets and avoid decisions which could result in a retreat to protectionism and regulatory arbitrage." In short, he is simply requesting leaders to set up a consistent set of measures and regulations which banks maintain to promote responsibility and overall effectiveness.

Members of the International Banking Federation which includes national groups from the US, Japan, China, Canada, Europe, India and South Africa have pushed for coordinated action ahead of the meeting as well as banks from Germany and France.

Green also remarked the G20 needs to introduce regulation which maintains choice, increases competition, and does not affect availability of credit. Regulation type must also be carefully chosen to not inhibit economic recovery.

Proposals to change the net stable funding ratio, counter-cyclical capital buffers and credit valuation adjustment model all need to be further considered and calibrated. These are other details mentioned in his letter that was mailed on Wednesday.

Wholesale funding markets and exit strategies from government support schemes also need to be discussed.

In order for banks to not be harmful to economic recovery, holding more capital and liquidity, which some regulatory agencies have proposed, needs to be introduced on a global scale and with very careful timing. Banks also estimate it could cut 3 per cent off economic growth over the next five years in the US, Europe and Japan and cost approximately 10 million jobs.

The G20 has been urged to draw an obvious distinction between insurers and banks in revamping regulations. Whatever the outcome of this year’s Summit and new bank regulations, great sensitivity will have to be exercised to optimize economic growth and at the same time not cause out of control inflation.

Europe's insurers on Thursday urged the G20 to draw a stark distinction between insurers and banks in revamping regulations, citing concern they will be harmed by efforts to rein in wayward lenders.