Banking Regulators From Across the Globe Offer Ways to Strengthen Global System
Basel, Switzerland–The world’s top banking regulators on Wednesday suggested new regulations to prevent another global financial crisis.The Basel Committee on Banking Supervision–an organization headquartered in Basel, Switzerland which determines international banking regulation standards–rules illustrate the pressure being put on the committee to adapt new policies quickly after the credit fallout, according to the Financial Times.…
Basel, Switzerland–The world’s top banking regulators on Wednesday suggested new regulations to prevent another global financial crisis.The Basel Committee on Banking Supervision–an organization headquartered in Basel, Switzerland which determines international banking regulation standards–rules illustrate the pressure being put on the committee to adapt new policies quickly after the credit fallout, according to the Financial Times. The suggestions were released just days after the Financial Stability Forum began creating a plan to correct the system internationally.Scheduled to be executed by national regulators, the plans will require banks to earmark more capital against complex structured products and off-balance sheet vehicles.Banks will probably need to increase their reserves, which could make them less profitable.
