LONDON (MNI) – Bank of England Financial Policy Committee member
Michael Cohrs said today that regulators should ‘err on the side of
being tough’ with the financial institutions they are regulating.
“We call the banks out on the various bluffs they’ve been putting
up but we err on the side of being tough,” Cohrs told the Parliamentary
Commission On Banking Standards Joint Committee here.
Cohrs also told the committee that regulators need to look at
banks’ capital, liquidity and leverage together when determining whether
an institution is engaged in risky practices.
“We have to think about capital, liquidity, leverage together. We
should always talk about the three concepts together, never as one or
the other… the mantra from the regulator should be leverage,
liquidity, capital seen as a whole,” he said.
Cohrs also cast doubt on whether the Basel 3 reforms on bank
capital will be fully implemented.
“Basel 3 is very complex, there must be a question as to whether
it’s going to be fully implemented,” he said.
-London newsroom 0044 20 78627491; email: wwilkes@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MT$$$$]
