Banking association president on G20: regulate financial markets in a globally consistent manner
“With their regulation of the financial markets since the 2009 Pittsburgh summit, the members of the G20 have set standards, learnt the right lessons from the financial crisis, stabilised the markets and made the entire industry more resilient,” said Hans-Walter Peters, President of the Association of German Banks and Spokesman of the Personally Liable Partners of the private bank Berenberg, in reference to today’s G20 meeting of the world’s leading economies in Baden-Baden.
It was nevertheless both sensible and correct to now undertake a critical review of rules and regulations which are not always or adequately coordinated with one another. “But valuable achievements, especially if based on worldwide standards, should not be discarded in the process,” Peters added.
Financial regulation was, moreover, always an ongoing endeavour and should take account of new developments, such as digitisation. “So it makes all the more sense for the G20 to involve international organisations like the IMF, the OECD and the Financial Stability Board (FSB),” stressed Peters, “because only internationally coordinated rules can be implemented effectively and without distorting competition.”
Hans-Walter Peters continued: “The contribution of the FSB, whose findings on risks emanating from the shadow banking sector and the implementation of OTC derivatives regulation provided substantial impetus to today’s discussion by the G20 finance ministers, cannot be underestimated.” It was now important to ensure that regulation did not prevent banks from performing their key role in the economy, especially the provision of lending.
To make economies more resistant to crises, the second major focus of the G20 summit, countries also had to rigorously tackle structural economic reforms. “If these are not implemented, or fail to be implemented decisively enough, risks may arise with negative future implications for the world economy and the global financial system,” warned the association’s president.
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