| LONDON, April 6
LONDON, April 6 Banks should speak up about the
benefits of international financial standards if they want to
maintain a level playing field, a global regulatory official
said on Thursday.
U.S. President Donald Trump's call to scrap some banking
rules has put the future of international rules into question,
prompting warnings from the European Union not to undermine
cross-border cooperation in regulation.
Svein Andresen, secretary general of the Financial Stability
Board (FSB), which coordinates regulation for the Group of 20
economies (G20), urged financial firms on Thursday to show their
support for global rules.
"Without international cooperation, or if international
standards are not fully implemented, or set too low of a common
bar, we risk fragmentation of the global system," Andresen said
in a speech in Malta.
Without naming the United States, he said that if global
rules were not fully applied or weakened, it could lead to
national responses to shore up resilience.
This would erode the willingness of regulators to rely on
each other, Andresen said in the starkest warning yet from a
global regulatory body.
"To avoid the potential risk of fragmentation, it is
important that the private sector speaks up about the risks, and
continues to engage productively and proactively with the
authorities and make a clear case for the benefits of effective
international standards," Andresen said.
Trump's stance on regulation has already led to talk among
bankers that international bodies like the FSB and the Basel
Committee, which sets global bank capital rules, risk being
sidelined without backing from the world's top capital market.
Work by the Basel Committee on finalising post-financial
crisis banking rules has already been delayed to give Trump time
to appoint a new top banking supervisor at the Federal Reserve.
Banks launched a vocal campaign against the finalisation of
the rules, saying they represent a big increase in capital
requirements, an outcome global regulators have dismissed.
(Reporting by Huw Jones; editing by Susan Thomas)