Monday, April 7, 2008

Simon Hills - Banking Regulation

Simon Hills, head of the UK Banking Regulation, sees a need for more coordinated action from central banks and regulators globally. The problems we are having today are about a "lack of access to liquidity and not lack of capital". He wants the Bank of England to inject more liquidity, and welcomes the Fed's recent moves in this direction. Mr. Hill thinks that the coming changes in regulation "could be the most we have seen in 30 years". By looking at Basel II and realizing that there is still no full implementation in particular in the US, it is difficult to believe that the right regulation will come at the right time. Hopefully all this talk is not just lip service, but regulators seemed to be not too eager to implement anytime soon:

"Our concern is that it is not brought in too quickly. There are a lot of ideas here in relation of how a special resolution regime for banks is going to work. We like too see a draft legistlation."

click for video

source: Banking Regulation
Simon Hills, Fox business news

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