Also see information on Basel on SIFMA's website.

Basel

The Basel Committee on Banking Supervision provides a forum for regular cooperation on banking supervisory matters. Its objective is to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide. The Committee's members come from Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.

In December 2009, The Basel Committee announced consultative proposals to amend global capital and liquidity regulations and invited responses by 16 April 2010.

GFMA Position

GFMA understands the need for change and the motivation behind the proposed timetable – however, these rules are going to shape the financial landscape for many years to come.  A rush to finalize and implement new rules on the amount of capital and liquidity that major financial institutions must hold could threaten economic recovery and stifle growth.  The Basel Committee’s timetable to finalize proposed revisions to the Basel Accord by the end of 2010 will not give enough time to assess their wider economic consequences and make necessary changes. Implementing the revised rules prematurely, without taking their impact into account, could have far-reaching and unwelcome effects on the wider economy. GFMA is calling on the Committee to complete the basic framework of the new regime this year and to consult more widely on the exact capital and liquidity requirements once their impact can be properly assessed.

Materials