The Basel Committee Chair, Erik Thedeen, has called for the swift completion of the Basel capital rules, emphasizing the importance of finalizing these rules to enhance global risk management standards.
The Basel III Endgame capital rules aim to reform how banks assess risk and manage capital reserves, but they have faced pushback from the banking industry in the United States, the United Kingdom, and the European Union.
Thedeen argues that stronger capital standards would fortify the global financial system and urges governments to act decisively. He also warns against the potential fragmentation of banking regulations across different jurisdictions and advocates for a consistent global framework.
The ongoing deadlock among U.S. banking regulators further complicates the situation. Thedeen expresses skepticism regarding claims that stricter capital requirements would hinder lending, emphasizing the need for banks to maintain robust capital positions.
The outcome of the ongoing discussions in the U.S. will have far-reaching implications for the global financial landscape.