IBA speakers critcise Basel III capital requirements
Author: | Published: 2 Nov 2011
Basel III plans to raise banks’ capital
requirements were slammed at a Tuesday
November 1 IBA session as both short-sighted and
Speaking at the session, 'The People v the financial
industry’, Hengeler Mueller’s banking
and capital markets’ partner, Hendrik Haag said
stifling the industry with overregulation in the hope of
avoiding another crisis would not work.
"It is short-sighted of politicians to think they can impose
additional deposit requirements on the financial sector and
still expect the industry to continue to play a role in
financing the market," he said. "For the economy to grow fast
you need there to be enough cheap money coming in."
Wardynski & Partners’ Krzysztof Wojdylo said
the proposed Tier One capital requirements under Basel III
would not solve the majority of problems in most banks as it
required too little capital to be retained. The average
solvency ratios of Polish banks during the 2008 financial
crisis were 2...