Banks call for 'third way' to implement Basel II
WASHINGTON, DC – A letter posted on the Federal Reserve website in January, from HSBC chief risk officer David Gibbons, suggests a 'third way' for Basel II implementation in the US. It also sharply criticises current drafts of Basel II regulation.
Gibbons, in a letter dated December 12 addressed to all four US bank regulatory agencies, wrote "we cannot support the Notice of Proposed Rulemaking (NPR) in its current form. In many important areas, the proposed rule diverges sharply from both established internal risk management principles and international standards, imposing an extra layer of regulation on 'core' banks without providing corresponding risk-management benefits."
The letter continues: "in a world of global capital markets
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