Basel II could raise tensions between global banks and sovereign states

The new Basel Accord for bank safety, also known as Basel II, is likely to raise the level of tension between global banks and sovereign states, according to governor Ben Bernanke of the Federal Reserve Board of Governors.

Addressing the Institute of International Bankers’ Annual Breakfast Dialogue in Washington, DC, Bernanke said banks with cross-border operations have genuine concerns about the prospect of each national supervisor asking different questions about Basel II implementation, demanding different data, applying the rules differently, or taking other actions that increase cost or are inconsistent with the principle of consolidated supervision.

“The combination of global banking and sovereign states

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