IIF: fragmentation risks tearing markets apart'

摘要

Diverging interpretations of global standards and the focus on national regulatory initiatives are damaging global markets, according to the Institute of International Finance (IIF). It is calling for the G20 and the Financial Stability Board (FSB) to address these trends for fear they could result in even more damage. The IIF argues that bank capital is being balkanised because national regulators insist that global lenders hold high levels of capital if operating in their jurisdictions. Additionally, they charge that liquidity is being drained as foreign institutions retreat from certain financial markets due to overwhelming regulatory regimes.