Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
Qualified Mortgage - Qualified Residential Mortgage
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Deposit Insurance
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Wednesday, January 16, 2013

Basel Rules Out of Touch with Laws, Customs and Economic Conditions

“The Basel rules are seriously out of touch with the laws, customs and economic conditions in the U.S., yet the proposition is that banks should follow them anyway for the sake of international regulatory solidarity,” wrote Wayne Abernathy, ABA’s EVP for Financial Institutions Policy and Regulatory Affairs.

In Abernathy’s American Banker article published today, he continues,
The idea that bankers must manage their liquidity positions is a good one. The idea that a college of experts in Switzerland can tell bankers around the world how to do it is unreasonable, and dangerous. Liquidity is a chameleon, directly affected by the local environment, which in turn is subject to change in many ways, predictable and otherwise.
Abernathy describes communications he has had with a banker in South Africa, noting Basel standards crafted in Switzerland will be applied from New York to Soweto.
When I raised concerns that Basel capital rules would contract bank services, my South African colleague recast the issue in starker terms. Authorities could encourage growth or they could repress the banking industry, but not both. As he saw it, the authorities have, for now, chosen repression.
Read the full article by following our ABARegPolicy twitter account, on the left hand side of the Dodd-Frank Tracker homepage.

No comments:

Post a Comment

Please read our comment policy before making a comment.