Finance ministers from the G20 countries were grappling with the problem of how to allow big banks to big fail as they gathered in St. Andrews, Scotland, on Friday.

A senior official with Canada's Finance Department has said the ministers will discuss whether banks should be required to maintain a plan for how they would be wound down if they collapse.

The official, who discussed the agenda with journalists Thursday on the condition of anonymity, said the proposal is gaining traction with the G20.

The idea is to clarify which creditors get paid if a big bank fails, in order to avoid financial panic. The collapse of investment bank Lehman Brothers last fall caused widespread turmoil on financial markets in part out of concern about who would get paid after the bankruptcy.

Bankers have said the proposal would load them with paperwork and impede their efforts to back economic growth. Scotiabank CEO Rick Waugh warned an audience in Toronto on Monday against going too far.

"Changes must certainly be made," he said, "but the risks of over-reaction and damaging our return to economic growth are not to be treated lightly."

Waugh said Canada's financial sector is already strong, with "effective fiscal, monetary and regulatory oversight, as well as good, prudent management of financial institutions."

Finance Minister Jim Flaherty acknowledged there were "disparate views" on possible solutions.

"We need to be comprehensive in our approach," Flaherty said. "So we need to talk not only about larger institutions, but also some of the smaller institutions, and make sure that we're not creating two-tiered involvement by government."

Officials at the two-day meeting which includes central bank governors from the world's top 20 economies are expected to end the conference with another promise to keep economic stimulus measures going until the global recession is clearly over.

If there is an agreement on a co-ordinated strategy for ending stimulus programs, it would go before the meeting of G20 leaders in Canada next June.