The Group of Seven finance ministers emerged from a two-day meeting in the Far North saying they are determined to make financial institutions bear the cost of crises they cause.

The G7 ministers also expressed confidence a global economic recovery is underway, although they cautioned it was still too fragile for governments to start withdrawing stimulus spending.

The meeting in Nunavut's remote capital was unusual in that it did not produce a formal communique.

And for its locale - a treeless town about 300 kilometres south of the Arctic Circle that offered none of the accoutrements the dignitaries from the world's richest capitals have come to expect.

Instead, it offered other forms of pleasure, such as dog-sled runs over frozen Frobisher Bay, which Canadian Finance Minister Jim Flaherty said had given the participants a chance to bond.

The informal setting appeared to have smoothed over differences about the individual approaches some countries are taking on bank reform.

Britain has placed an onerous tax on banker bonuses and the United States has proposed regulations, including a ban on bankers using their own assets to trade, a measure others see as unnecessary.

U.S. Treasury Secretary Tim Geithner was adamant his country remains committed to the international plan to raise capital requirements for banks by the end of the year. He said his own country's add-on regulations were compatible with the Group of 20 process.

"These common standards are going to have to be complemented by slightly different approaches at the national level," he said.

"What you saw today ... was a strong commitment together to put in place the kind of strong reforms that would prevent these kinds of crises from happening again."

Flaherty said some of the concerns he expressed about non-compatibility of approaches had been aired out, and agreed with Geithner that the G7 ministers agreed on the broad direction of reform.

One of those reforms, said Flaherty, is a mechanism to ensure the financial sector bears the brunt of any future economic crisis it causes through lax or irresponsible practices.

"If financial institutions contribute to an economic crisis then they should position themselves or be positioned so they can contribute to what they cause," he said.

The mechanism for holding financial institutions responsible is currently being studied by the International Monetary Fund. Some proposals include an international micro-tax on transactions, or the creation of an additional contingency reserve.

Some have said that cracking down too hard on the banks could cause them to hold back lending and jeopardize the recovery, but Geithner dismissed the worry. He said "great care" would be taken to ensure that does not happen.

The meeting also resolved that the G7 countries, who have all forgiven the debts of earthquake-ravaged Haiti, will lobby other countries and international institutions that haven't to follow suit.

Meanwhile, European officials sought to calm concerns about debt problems in Greece that have shaken financial and money markets in Europe.

European Central Bank President Jean-Claude Trichet issued a statement saying Greece would abide by belt-tightening targets.

"We are confident that the Greek government will take all the decisions that will permit it to reach that goal," he said.

Flaherty said later that while the Greek budget problems were discussed at length, the consensus was that the size of the Greek economy was not sufficient to cause "intense concern."

Wrapping up the meeting, Flaherty said he was pleased with the level of the discussions, adding that a couple of participants had called it the best G7 in 20 years.

"It's certain the best I've ever attended," he said. "The location helped. We had no ties, frank discussions, it was an adventure for people, it took them out of office mode. And the world economy is coming back... so we're looking ahead."