The G7 said they would "use all available tools" to support financial institutions and prevent their failure, including using all necessary steps to open up credit and money markets so banks have access to liquidity.

The ministers also said they would ensure banks and other financial intermediaries could raise capital from both public and private sources, which should restore confidence in order to lend money to households and businesses.

The G7 also said it supported insurance and guarantee programs for bank deposits so retail depositors will have confidence in the protection of their deposits.

The statement said the G7 would "take action, where appropriate, to restart the secondary markets for mortgages and other securitized assets," and that accurate valuation of assets, plus the implementation of high quality accounting standards, would be necessary.

"The actions should be taken in ways that protect taxpayers and avoid potentially damaging effects on other countries," the joint statement said. "We will use macroeconomic policy tools as necessary and appropriate."

The statement concludes: "We will accelerate full implementation of the Financial Stability Forum recommendations and we are committed to the pressing need for reform of the financial system. We will strengthen further our cooperation and work with others to accomplish this plan."

By Patrick McGee, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Nancy Girgis, This email address is being protected from spam bots, you need Javascript enabled to view it

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