IBFed Says "Warm Words" Won't Fix the Banking Industry
G20 members need to follow through on their commitments, the International Banking Federation (IBFed) told finance ministers attending the G20 Summit in Scotland. The IBFed called on governments to focus on the co-ordinated reforms they had signed up to at previous summits, adding up the total cost and impact of what they were suggesting before agreeing more and more new measures.
Nancy Hughes Anthony, chairman of the IBFed and chief executive officer (CEO) of the Canadian Bankers’ Association, said: “Worldwide the banking industry recognises the need for reform and is committed to working with governments and regulators to bring about effective change. But change must be co-ordinated to be effective and we need to fully understand the cost and implications of all the measures. It is vital we understand the total impact of measures already agreed. These must be assessed urgently. Failing to do so risks the development of an incoherent regulatory regime or the implementation of measures that will have a very real impact on a fragile world economy.
“The IBFed supports many of the regulatory changes identified by the G20 but the high level of co-ordination and agreement reached in previous summits must not be lost. Markets are global and it is important that regulatory regimes and policy makers recognise this. Warm words won’t fix the banking industry. G20 members need to follow though on the decisions they have already taken,” she added.