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Early signs of recovery should not break down the G20 nations’ consensus on coordinated regulatory reform, the UK’s banking industry warned in a letter to prime minister Gordon Brown, published today.
In the letter, British Bankers’ Association chairman Stephen Green offers the UK banking industry’s support to G20 leaders and re-states the banking sector’s commitment to rebuilding the international regulatory system. But as the immediacy of the crisis fades, he warns of the risk that the consensus built at the height of the turmoil will begin to falter.
“We believe that the G20 must commit to a long term vision for the future of financial regulation which is international in nature, grounded in consensus and coordination and which achieves a careful and well analysed equilibrium between the overriding objective of the stability of the international financial system and the imperative of long term, stable economic growth.”
The letter calls on the G20’s Financial Stability Board to assess the cumulative impact of all the regulatory measures proposed, and stresses the need for the principles of good regulation to be followed, including a transparent process and full consultation with the industry.
