Turner warns of capital requirements dilemma
FSA chair Adair Turner insists on the consideration of counter-cyclical macro-prudential policies in the run-up to regulatory structure overhaul
Chair of the UK Financial Services Authority (FSA) Adair Turner has warned regulators will face a dilemma when setting new capital requirements for banks.
In a speech at Mansion House on October 20, Turner pointed out that many of the post-crisis arguments put forth for macro-prudential policy have focused on how to limit the extent of credit booms, but insists they should also consider how to build up defences during economically secure periods.
"Political independence to take unpopular action
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