Banking president: regulation with a sense of proportion for a strong financial marketplace
“The era of nationalism in financial regulation must be over – despite President Trump and Brexit. This is something we should have learned since 2007,” stressed Hans-Walter Peters, president of the Association of German Banks and spokesman for the managing partners of private bank Berenberg, with today’s “Banking in transition” conference in Frankfurt in mind.
The trend toward renationalisation and populism had to be firmly resisted. A return to provincialism couldn’t be the answer to the current global challenges. Mr Peters called for keeping open a dialogue even after Brexit: “Only as closely coordinated political action as possible will take us forward – this has been shown particularly by the financial regulation of the past few years.”
Also, when it came to creating optimal conditions for a strong and stable financial marketplace, what mattered was not the quantity but the effectiveness of regulation. Mr Peters therefore felt that there was a lot of catching up to do as far as proportionality in the regulatory framework was concerned. “A lot doesn’t necessarily help a lot. On the contrary, small and medium-sized banks in particular need to be relieved of some of the bureaucratic burden they face. Regulation mustn’t lead to their being suffocated,”
Mr Peters said.
The Association of German Banks had therefore presented a graduated set of proposals on proportionality in the regulatory framework geared to the size of banks. Mr Peters: “In doing so, we are not seeking different requirements for the level or quality of capital and different liquidity rules but appreciable relief from unnecessary over-regulation for smaller banks.”