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Banks step up pressure on regulators finalizing global rules 

August 12, 2016

Huw Jones, Reuters

New rules need to be better tested by regulators for any impact on lending and markets, a banking lobby said ahead of a meeting next month to finalize the latest wave of reforms aimed at preventing another financial crisis.

The Global Financial Markets Association (GFMA) said it has written to the watchdogs, requesting an end to duplication and conflicts in rules already rolled out, and for them to study how the demands will mesh with reforms in the pipeline.

During the 2007-09 crisis, leaders of the Group of 20 economies (G20) called for higher levels of bank capital, a step the Basel Committee of regulators implemented with "Basel III".

Balance sheets have since shrunk as banks shed risky assets, the GFMA said in a statement.

"While in many cases changes to the business models of banks and the structure of markets were intended, in other areas it is likely that the cumulative impacts go beyond those anticipated and may negatively affect the functioning of the financial system," it said. Read more


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