Industry Pushes Back Against New Basel Proposal

June 13th, 2016

Industry Pushes Back Against New Basel Proposal

Theme:  Changing Regulatory Tide

A coalition of industry stakeholders is ramping up opposition to a plan proposed by the Basel Committee on Banking Supervision to standardize financial institutions’ methods for assessing risk and exposure. The new model was proposed in March and would give the regulatory body, whose members include the European Central Bank (ECB) and Federal Reserve, more control over capital requirements.

On Monday, June 6, 2016, the Institute of International Finance (IIF), a global association representing 500 firms affiliated with the financial services industry, sent a letter to the Basel Committee expressing concern with the “bluntness of the approach” of the new proposal.  The IIF argued that the standardized model could have a chilling effect on the global economy and proposed a series of alternatives that would provide financial institutions more discretion in risk modeling.

Resources:

IIF Letter:

Press: