Banking supervisors may seek to simplify Basel III

LONDON Tue Mar 12, 2013 8:11pm IST

Stefan Ingves speaks to Reuters reporters during an interview in Stockholm June 16, 2011. REUTERS/Bob Strong/Files

Stefan Ingves speaks to Reuters reporters during an interview in Stockholm June 16, 2011.

Credit: Reuters/Bob Strong/Files

Related Topics

Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  Slideshow 

LONDON (Reuters) - Global banking regulators will examine whether their new rules forcing lenders to hold more capital to absorb any future losses should be simplified after criticism that they are too complex to be effective.

Stefan Ingves, chairman of the Basel Committee on Banking Supervision, said a "vigorous debate" has developed over whether its rules, known as Basel III, strike the right balance between the ease of application and being sophisticated enough to make big banks safer.

Bank of England director of financial stability Andrew Haldane and Thomas Hoenig, director at the FDIC, a U.S. regulator, have said Basel III is too complex to work properly, prompting the committee to look again at its rules.

The global roll-out of Basel III began in January and will take six years but the European Union and United States have yet to formally implement the accord.

The committee will discuss a review when it meets on Wednesday. But Ingves warned it should not become an excuse to put off implementing Basel III or other reforms already agreed.

"It is too early to say how we will take this work forward," Ingves said in a speech released on Tuesday.

Some changes could be made to how trading books are supervised or supervision in general, he said.

"And others might necessitate a deeper, longer-term review before we can decide on any solution, he said.

The committee will publish a discussion paper in the coming months that discusses some of the complex trade-offs that need to be made, Ingves, who also heads the Swedish central bank, added.

(Reporting by Huw Jones; Editing by Erica Billingham)

FILED UNDER:

REUTERS SHOWCASE

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

GDP, RBI Preview

GDP, RBI Preview

GDP growth set to weaken, business wants reforms more than rate cut  Read | Related 

Jaitley to Rajan

Jaitley to Rajan

Jaitley likely to meet Rajan on Monday to urge rate cut  Full Article 

Hughes Dies

Hughes Dies

Australia's Phil Hughes dies after being hit by ball  Full Article 

OPEC Meeting

OPEC Meeting

Low expectations for oil output cut  Full Article 

Jamini Roy

Jamini Roy

Photo Gallery – Bengali household name Jamini Roy’s paintings  Full Article 

Google in Europe

Google in Europe

Insight - Behind Google's Europe woes, American accents  Full Article 

India-focused Funds

India-focused Funds

India-focused hedge funds up over 40 pct YTD - HFR  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage