Large banks warn of consequences of financial reform
Oct 10, 2010, 21:32 GMT
Washington - A coalition of large international banks warned Sunday of possible unintended consequences and regulations as a result of the financial crisis.
'There are many troubling developments that we are now seeing on regulatory reform,' said Deutsche Bank chief Josef Ackermann, who serves a chairman of the Institute of International Finance.
After the adoption of the Basel III reforms, which set rules that will force financial firms to hold more reserves in coming years to avoid another damaging financial crisis, governments have continued to propose further regulations.
'We need to avoid a process where requirements on banks keep growing to the point where their ability to contribute fully to economic growth is choked-off,' Ackermann said.
Peter Sands, the head of the group's committee on regulation, warned of consequences for the global economy if further regulations are imposed on banks.
Officials have indicated that the Basel reforms are only a minimum and should be put into place more quickly, but Sands cautioned that that could result in 'all manner of additional costly requirements.'
The IIF has around 400 members and bills itself as the largest association of financial institutions worldwide.
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