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Press release  

 

Financial reform : Consistent implementation of the rules defined by the G 20 is a priority

French banks recognise the efforts made by the G20 to address the profound global imbalances through international cooperation mechanisms. All progress therein will undoubtedly bring greater stability to the financial system. The French Presidency will therefore be tackling those issues that are crucial in stimulating growth and employment around the world.

As regards banking and financial regulations, French banks are pleased to note that the G20 recognises the importance of establishing a level playing field to ensure long-term financial stability. They welcome the implementation of mechanisms to monitor the consistency of the measures adopted by the G20 and their concrete application in order to prevent any distortions of competition between the world's financial market places and all of their participants, banks or otherwise. This is particularly relevant since, today, this instability primarily stems from non-regulated sectors.

The FBF underscores that the risks incurred by the financial system are above all linked to the manner in which the markets operate. Hence the importance it assigns to working to make them more secure, notably through clearing systems for derivatives. While far from convinced of the danger attributed to so-called systemic institutions, the FBF finds positive that there are multiple ways in which the issue can be resolved. In particular, it values the recognised importance of supervision. Furthermore, it underlines the fact that, under the Basel recommendations, national supervisors are still able, on a case-by-case basis, to request that banks implement more stringent measures should the need arise. In the opinion of the FBF, this is the way forward when it comes to supervising bank balance sheets and their leverage effect (Pillar II).

No extra capital charges

Imposing additional charges on certain banks, either in the form of capital requirements or in the form of taxes, or stricter liquidity rules, would be inappropriate as they would be ineffective to prevent a crisis and would have a negative impact on financing the economy. New prudential regulations (Basel 3) will already require banks to mobilise all of their resources in the years to come. To make regulations even more cumbersome would be particularly counterproductive, especially for the European economy as two-thirds of it is financed by banks.

French banks are ready to take part in the definition of crisis-resolution mechanisms but underscore that a single scenario cannot apply to all banking structures, but must be adapted to their different strategies and the diversity of the real economies that their vocation is to finance.

Finally, the FBF would like for progress to be made in converging global accounting standards providing that they are consistent with the current banking activities. More specifically, it once again underlines the fact that the notion of "fair value" is only relevant for trading books with deep and liquid markets.

CONTACT

Colette Cova
email : ccova@fbf.fr
Tel : 01 48 00 50 07

Kenza Benqeddi
email : kbenqeddi@fbf.fr
Tel : 01 48 00 50 08

 
FBF |  G20
 
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