BASEL, Switzerland, June 25 (Global Risk Regulator) – Global banking regulators have not discussed, nor agreed to, the elimination of any part of their proposals to strengthen bank capital and liquidity requirements, a spokesman for the Basel Committee of top banking supervisors said in a statement today.
The spokesman was commenting on a UK Financial Times newspaper report today that said regulators are likely to shelve the idea of forcing banks to maintain a tough, new long-term liquidity ratio following intense lobbying by the banking industry. The FT said a draft of the Basel Committee’s latest thinking is to be presented to leaders of the Group of Twenty top economies at their summit this weekend in Toronto.
The spokesman said the Basel Committee, the body that sets
international banking rules, is on track to deliver a complete calibrated package of capital and liquidity standards, generally dubbed Basel III, to G20 leaders at their November summit in Seoul.
At its forthcoming July 14-15 quarterly meeting, the Basel Committee will review the comments received on its December 17 2009 capital and liquidity reform proposals, the spokesman said.
The Committee will also review the results of its quantitative impact study, or test of the Basel III proposals, and the assessments of the impact on the broader economy. The Committee will then present recommendations to its oversight body, the Group of Governors and Heads of Supervision from the Committee’s 27 member states.
As reported in the latest issue of Global Risk Regulator newsletter, some revisions to the original Basel reform package are likely, particularly in relation to the proposed global standards for liquidity, where certain regulators have also expressed growing concerns. But with the critical mid-July meeting of the Basel Committee looming, bankers seemed resigned to a tough package of reforms that makes only limited concessions to strong industry concerns about the impact on credit provision and global economic growth.
(see earlier GRR email today “Regulators shelving liquidity ratio, FT says”; “Banks win battle for limits to Basel III”: www.ft.com;
“Regulators, bankers clash over reform impact costs”, Global Risk Regulator newsletter)
David Keefe (email@example.com)