Nov. 21 (Bloomberg) -- Bundesbank board member Andreas Dombret said U.S. policy makers shouldn’t delay the implementation of global banking rules, known as Basel III.
“There is no alternative to implementing Basel III on a global scale,” Dombret said today in a speech in Frankfurt. “In particular, I call on my colleagues in the U.S. not to unexpectedly question the whole framework in the 11th hour -- after taking part in its negotiation during the entire process.”
Boosting reserves as required by Basel III would help prevent a repeat of taxpayer-funded rescues, while “separating banking functions will not prevent future banking crises,” Dombret said.
“I do not see a clear case for separating banking functions,” he said. “Even if there were a clean organizational separation, the interconnectedness of the financial sector and the resulting systemic importance of individual institutions would not be entirely eliminated.”
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