Goldman's Cohn Says Regulations Hamper Small-Business Lendingby
Regulations designed to boost banks’ capital and prevent another financial crisis are hampering lenders’ ability to help small businesses, and that’s impairing global economic growth, Goldman Sachs Group Inc. President Gary Cohn said.
“Liquidity provided by the central banks is now being trapped into the banks because of the increasing capital and regulatory requirements,” Cohn said Friday at a meeting of the Institute of International Finance in Lima, Peru. “We have to fix the transmission mechanism to allow job creation.”
Cohn was joined on a panel discussion by Jose Antonio Alvarez, the chief executive officer of Banco Santander SA, who said the regulations also are an impediment to underwriting.
Axel Weber, chairman of UBS Group AG, was also on the panel. Weber said China’s market correction is an opportunity for the Zurich-based bank to boost its presence there.