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BIS says global bank regs to be finalised by end of 2010

Wednesday 12 May 2010 - by Iain Anderson

Reform to global banking regulation will be settled by the end of 2010 according to Bank for International Settlements general manager Jaime Caruana.

Speaking at the Global Financial Forum, Caruana said there is considerable political and policymaker will to put in place a new regime which will ensure clarity for financial institutions and national regulators.

He said: "I am very confident we will achieve the new regime by the end of 2010."

Caruana also said it was vital to get the right calibration of capital levels to ensure there was no threat to sustaining global economic recovery. He said: "We have to get the balance right between the resilience of the financial system and sustaining new growth."

On the question of a global levy on financial institutions, Caruana was more reticent. He said: "Taxes and levies are not a substitute for capital. Capital and liquidity is the core of this debate."



Caruana said BIS has received around 200 international responses to its recent consultation on capital reforms and was working to a timescale of issuing new capital rule this year. He said: "We are taking a top down and bottom up approach to ensure we get the right levels of credit growth, risk and economic growth."


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