Regulators downplay Basel III impact

20 Aug 2010

The fight over appropriate levels of bank capital warmed up again this week when the Financial Stability Board and the Basel Committee on Banking Supervision estimated that the short term economic cost of tightened capital and liquidity standards will not exceed 0.3% of GDP. They could even be less if mitigated by monetary policy or implemented over a longer period.

The finding, based on modelling by central banks around the world, puts regulators at odds with industry bodies such as the Institute of International Finance which have estimated that Basel III could hit global GDP by as much as 3% compared to the baseline.

Moreover, a separate BCBS ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.

Oops, something went wrong

We're sorry but at the moment we can't load this data