G-20: New rules, $1 trillion IMF boost

G-20: New rules, $1 trillion IMF boost

Group of 20 major economies to increase oversight of the global banking system and seek to foster economic growth worldwide.

LONDON (CNN) -- World leaders at the G-20 Summit agreed Thursday to tighter regulation of the global financial system in response to the financial crisis and pledged more than $1 trillion to bolster the International Monetary Fund.

"We believe that the only sure foundation for sustainable globalization and rising prosperity for all is an open world economy based on market principles, effective regulation, and strong global institutions," the Group of 20 said in its official statement.

The group said it will increase oversight of hedge funds credit rating agencies in an effort to prevent future meltdowns. It will also implement new rules on pay and bonuses for executives and vowed to crack down on tax havens.

G-20 members are also pumping an additional $1.1 trillion into the IMF to "restore credit, growth and jobs in the world economy."

"Together with the measures we have each taken nationally, this constitutes a global plan for recovery on an unprecedented scale," according to the G-20 communique.

The leaders reiterated their commitment to resisting economic protectionism and promoting global trade.

Additionally, the group affirmed that the nations were committing $5 trillion by the end of next year as part of an "unprecedented and concerted fiscal expansion." The fiscal plan will save or create millions of jobs and help restore economic growth, they said.

The United States, a leader of the G-20, enacted a $787 billion economic stimulus plan in February.

The group agreed to meet again later in the year to review progress.

CNN