September 13, 2021
(Adds full name of BoE officer in fourth paragraph)
by Huw Jones
LONDON (Reuters) – Countries are facing “challenges” in implementing the final elements of the stricter capital rules of global banks and may need to coordinate on timing, a senior Bank of England official said Monday.
The introduction of the rules known as Basel III began after the global financial crisis of more than a decade ago highlighted that banks held too little capital, forcing taxpayers to bail out many.
Banks, particularly in Europe, have lobbied to loosen the rules, saying they need to focus on helping economies recover from COVID 19.
“We should go ahead and do it and wait for nothing,” BoE executive director for prudential oversight Victoria Saporta said at an event held by the Institute of International Finance, a banking industry body.
Central bankers and banking regulators in the European Union called on the bloc last week to implement the remaining Basel rules in full and on time as it prepares to submit its proposals for implementing the rules.
The rules have already been postponed for one year to January 2023 due to COVID.
Saporta said the BoE is “working hard” to define how it wants to implement Basel III, but this may not be done by the end of the year as hoped.
“Our work on Basel III has been somewhat delayed by our responses to the pandemic,” Saporta said.
“We are finding that the package is challenging.”
The BoE must demonstrate that it has taken into account how other jurisdictions also implement global rules such as Basel, but the EU has yet to publish its proposals.
“Our intelligence so far is that other major jurisdictions such as the EU, the US and others are also facing time challenges,” Saporta said.
“We think it would be ideal for the package to be implemented at a very similar time in major jurisdictions, so we are very open to coordinating with others to do so,” he added.
(This story adds the full name of the BoE officer in the fourth paragraph)
(Reporting by Huw Jones; Editing by Toby Chopra)
[ https://newswarden.com/bank-of-england-says-covid-hitting-timing-of-basel-bank-capital-rules/ https://d26toa8f6ahusa.cloudfront.net/wp-content/uploads/2021/07/30214746/a-quiet-place-part-2-bigs-16.pdf