Global slowdown in banking regulation
After two decades, are the lessons of that crisis at risk of being forgotten? The United States, European Union and United Kingdom are currently delaying the implementation of new banking regulations, each fearing unfair competition from the others. "We are not yet in a race to the bottom, but the risk is very real," summed up Nicolas Véron of the Peterson Institute for International Economics (PIIE), a US-based think tank.
The standoff centers on the Basel III standards. These are set by the Basel Committee, a body that brings together supervisors from 28 countries and institutions. After the 2008 financial crisis, Basel II standards were introduced as early as 2010 to strengthen the capital banks were required to hold. Then, in 2017, Basel III standards were established, with implementation planned for 2022. Japan and Canada remain the only two major jurisdictions to have complied.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
an hour ago
- Euronews
EU urges China to drop sanctions on two Lithuanian banks
The European Union called on China to revoke sanctions imposed on two Lithuanian banks in retaliation for EU penalties on Chinese lenders linked to Russia's war in Ukraine. Beijing announced the measures this week against Urbo Bank and Mano Bank despite the fact that these Lithuanian banks do not operate in China, giving Beijing's move a largely symbolic character. Nonetheless, the tit-for-tat measures underscore the deepening divide between Brussels and Beijing over China's support for Russia in its war on Ukraine. At EU headquarters in Brussels, European Commission spokesperson Olof Gill defended the bloc's sanctions on Chinese banks. China 'must respect the problems we have identified,' Gill said. 'Our sanctions are the centrepiece of our efforts to minimise the effectiveness of the Russian war machine.' He said the Commission does not believe that the Chinese countermeasures 'have any justification or are evidence-based, and therefore we call on China to remove them even now.' EU sanctions on Russia's war in Ukraine The EU's latest Russia sanctions package, adopted in July and effective 9 August, included Heihe Rural Commercial Bank and Heilongjiang Suifenhe Rural Commercial Bank. The bloc accused them of providing crypto-asset services that help Moscow evade restrictions. In explaining its sanctions on the Lithuanian banks, the Chinese Ministry said the EU sanctions on Chinese firms had "a serious negative impact on China-EU economic and trade relations and financial cooperation.' The banks and the government in Lithuania said the sanctions were not expected but would likely have little practical impact. 'According to the preliminary assessment, this decision will not have a significant impact on either the country's financial system or the activities of the banks themselves, since the business models of the mentioned banks are focused on the local market,' the Bank of Lithuania said on Wednesday in a statement. Marius Arlauskas, the head of administration at Urbo Bank, also said that 'since we do not have any business partnerships with Chinese individuals or legal entities, the sanctions will have no impact on the activities of Urbo Bank and the implementation of prudential regulations." Why has China targeted Lithuania? The Baltic nation has drawn China's ire for years. Beijing expelled Lithuania's ambassador in 2021 in response to Lithuania allowing Taiwan to open a liaison office in Vilnius, the Lithuanian capital. China regards Taiwan as a breakaway province and prohibits other countries from having formal ties with Taipei. Taiwan has long sought closer relations with the Baltic states, citing their past experiences under authoritarian rule and embrace of multiparty democracy and liberal values. In 2024, Lithuania expelled Chinese diplomats after a Chinese ship came under suspicion during an investigation into the severing of two undersea data cables. One runs under the Baltic Sea between Lithuania and Sweden.
France 24
2 hours ago
- France 24
Grand Magal in Touba honors Cheikh Ahmadou Bamba, attracts millions of pilgrims
01:51 14/08/2025 Beijing: First world humanoid robot games kicks off china 14/08/2025 Israeli far-right minister backs contentious West Bank settlement plan 14/08/2025 Hong Kong court to hear closing arguments in mogul Jimmy Lai's trial 14/08/2025 Serbia: Clashes erupt for a second day at anti-government protests 14/08/2025 Wildfires kill at least 3 and displace thousands across southern Europe 14/08/2025 DR Congo: US sanctions armed group, mining firms 14/08/2025 Last chance saloon for global plastic pollution treaty 14/08/2025 US places $5 million reward for top Haiti gang leader's arrest 14/08/2025 French animal shelters see surge in heatwave cases
France 24
4 hours ago
- France 24
Israeli far-right minister backs contentious West Bank settlement plan
04:30 14/08/2025 Hong Kong court to hear closing arguments in mogul Jimmy Lai's trial 14/08/2025 Serbia: Clashes erupt for a second day at anti-government protests 14/08/2025 Wildfires kill at least 3 and displace thousands across southern Europe 14/08/2025 DR Congo: US sanctions armed group, mining firms 14/08/2025 Last chance saloon for global plastic pollution treaty 14/08/2025 US places $5 million reward for top Haiti gang leader's arrest 14/08/2025 French animal shelters see surge in heatwave cases 14/08/2025 Four years on: Taking stock of the Taliban's return to Kabul 14/08/2025 Trump-Putin summit: Ukraine's European allies discuss ceasefire conditions
