There is a “growing risk to international markets” from poorly co-ordinated national policy responses to the financial crisis, the trade association of the world’s biggest banks said on Monday.

Charles Dallara: dismissed certain US proposals

The Institute of International Finance called on world leaders to use the G20 summit in Pittsburgh next week to “resist fragmentation of the global financial system” by pledging to avoid national initiatives, which would isolate pools of liquidity, in favour of globally agreed solutions.