G20 Risks Harm By Further Raising Capital Needs, Pandit Says
The Group of 20 countries risks harming banks, consumers and the economy by further raising capital and liquidity requirements, Citigroup Inc. Chief Executive Officer Vikram Pandit said.
The Basel committee’s recommendations on risk management and calibration aren’t good solutions, Pandit wrote in an editorial in the Financial Times. For consumers seeking loans, the rules give little weight to future prospects, he said.
The economy may also suffer because the rules increase capital requirements in bad times -- when more lending is necessary, Pandit said.
Basel III’s recommendation for capital requirements, along with proper regulation, are “more than enough” to stabilize the banking system, Pandit said. Citigroup is well ahead of schedule to meet and exceed the requirements, he said.
To contact the editor responsible for this story: Vivek Shankar at vshankar3@bloomberg.net
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