TORONTO The United States is well on its way to adopting new global banking standards known as Basel III aimed at making the financial system more resilient to shocks, Mark Carney, chair of the Financial Stability Board, said on Tuesday.
U.S. regulators last month delayed introduction of the Basel III rules beyond the January deadline, triggering fears among regulators that the new regulations would be derailed completely.
Carney said the U.S. is stress-testing its 19 largest banks, which account for 90 percent of banking assets in the country.
"And they are stress-testing them to Basel III standards and an accelerated implementation of Basel III," he said in response to a question from the audience after giving a speech in Toronto.
Carney, who is also the Governor of the Bank of Canada and will head the Bank of England as of next July, shrugged off a comment that the U.S. was far behind on Basel implementation.
"So the facts on the ground are that the core of the U.S. banking system has built capital, has built around $300 billion of capital. It is being stress-tested back to Basel III norms, and so the core -- not just the core but 90 percent of the U.S. financial system -- is on a path to Basel III."
Carney said Canadian banks were set to be fully compliant with the new capital rules ahead of schedule.
(Reporting by Solarina Ho and John Tilak; Writing by Louise Egan; Editing by Diane Craft)
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