Washington, D.C., October 4, 2016 -The Institute of International Finance (IIF) today released its semiannual policy letter to the Chairs of the International Monetary and Financial Committee and the Development Committee of the International Monetary Fund and World Bank addressing ongoing regulatory efforts, particularly the Basel Committee's latest reforms to the bank capital framework.
"We welcome the Basel Committee's commitment to revise its current proposals to ensure they meet the mandate of no significant increase in overall capital laid out by the GHOS, and reiterated by the Financial Stability Board, ECB and a number of other policy makers," IIF President and CEO Tim Adams wrote. "In doing so, the Basel Committee should be more transparent, thorough and comprehensive in how it recalibrates the proposals and how it measures the impact of its final package. We encourage the Basel Committee to continue engaging in dialogue with the industry as it moves forward."
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The letter also called for a pragmatic approach to insurance regulation, a focus on activities rather than entities in asset management policymaking and for the G20, FSB and Financial Action Task Force to address the consequences of de-risking in correspondent banking.
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Other topics discussed in the letter include:'
- Mitigating the impact of low and negative interest rates on the financial sector;
- Making full use of the economic policy toolkit;
- Moving towards an effective post-Brexit UK-EU relationship in a well-performing global system; and
- Supporting open markets, global trade and stable cross-border capital flows.
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The Institute of International Finance is the global association of the financial industry, with close to 500 members from 70 countries. Its mission is to support the financial industry in the prudent management of risks and to advocate for regulatory, financial and economic policies that are in the broad interests of its members and foster global financial stability and sustainable economic growth. IIF members include commercial and investment banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks and development banks.'