Pittsburgh, Pennsylvania  - Brazilian President Luiz Inacio Lula da Silva said Friday that he was satisfied that world leaders recognized the need for improved financial regulations to guard against economic panics in the future.

Lula commented following the Group of 20 summit in Pittsburgh about the agreements reached among the world's 20 leading economies for a series of financial reforms to rein in risky banking practices and limit executive pay.

"I leave this meeting with conviction that G20 now fulfills an exceptional role in this new economic order and in regulating the financial system, and to establish rules for creating jobs," Lula said through a translator.

"All heads of state agreed that the financial system has to be regulated, so that we do not commit the same mistakes that we made last year," when risky lending practices resulted in soaring mortgage defaults, parzlysing credit markets and sparking the global economic crisis, Lula said.

Brazil, as well as India and China, appear the be the leading beneficiaries of a plan to expand the number of countries that govern the world's economy. Leaders have agreed to phase out the G7, which included the world's largest developed economies, in favour of the G20 as the main mechanism for establishing international economic policies. (dpa)