Nout Wellink, Chairman of the Basel Committee on Banking Supervision and President of the Netherlands Bank, today highlighted concrete steps the Basel Committee is taking to strengthen the global regulation of the banking sector.
Mr Wellink, speaking before the European Parliament's Committee on Economic and Monetary Affairs, noted that "supervisors must have a comprehensive strategy to deal with the crisis and the associated impact on banks. This is essential if we are to restore stability to our financial systems and economies."
The Basel Committee's current and planned initiatives are intended to produce a more robust supervisory and regulatory framework for the banking sector. These efforts, which also are in support of the initiatives and recommendations of the Financial Stability Forum and the G20 leaders, include:
In discussing the Basel Committee's long-term strategy, Mr Wellink stated that "we need to establish a clear target for the future regulatory system that substantially reduces both the probability and severity of a crisis like the one we currently are working through." He added that "by providing clarity about the future regulatory framework, we will help re-establish near term confidence, reduce the risk of competitive distortions and limit the degrees of uncertainty for the public and private sector."