U.S. and U.K. lawmakers are increasingly calling for tougher global capital standards than those included in the so-called Basel rules, said Robert Jenkins, a member of the Bank of England’s Financial Policy Committee.
Jenkins is “encouraged by the growing frequency of tougher comments than in the past,” he told reporters at a conference on financial regulation in London today.
“There are as many examples of people voicing concerns that Basel III doesn’t go far enough as people worried it goes too far,” Jenkins said. Those calling for tougher rules in the U.S. and U.K. are “new on the scene. You see that in Congress and in Parliament,” Jenkins said.
The FPC this week proposed powers to alter the amount of capital banks hold against real-estate assets as well as derivatives and bonds as it seeks to strengthen the financial system. The committee, led by BOE Governor Mervyn King, is currently operating on an interim basis as legislation passes through Parliament.
Bank shares soared this month after the Basel Committee on Banking Supervision, a global group of central bankers and regulators, struck a deal to broaden the types of easy-to-sell assets banks could hold to protect against future credit crises.
To contact the reporter on this story: Ben Moshinsky in London at firstname.lastname@example.org
To contact the editor responsible for this story: Anthony Aarons at email@example.com