I attended the inaugural meeting in Berlin as Vice-Minister of Finance for International Affairs. The main objective of the G20 was to promote cooperation among systemically significant economies including emerging market economies, in order to achieve stable and sustainable global growth.
While not denying that some parts of Europe are “overbanked”, I would qualify this statement a little bit. The European banking sector looks much bigger than the US one compared to GDP, but in the US most mortgages are not in the banks’ balance sheets. That is an important difference. The shadow banking system is also much bigger in the US.