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Resilient by design: why strong rules still matter

· Erik Thedéen, Chair of the Basel Committee on Banking Supervision (International)

Summary written by Dark Majestic in its own words · topics: financial stability, trade, fragmentation and geopolitics

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· Erik Thedéen Wiki · Basel Committee on Banking Supervision WikiResilient by design: why strong rules still matter

ContextSpeech at a forum on financial regulation in a changing environment; the Basel Committee sets global bank standards and faces pressure to soften rules.

Why it mattersThe Basel Committee chair argues against weakening bank rules, warning that risk transfers and fragmentation can hide risk.

Problems raised
  1. The banking environment is changing fast.
  2. Risk transfer may not truly remove risk.
  3. Fragmentation creates regulatory arbitrage.
Solutions proposed
  1. Keep strong, risk-sensitive rules.
  2. Assess guarantees prudently.
  3. Maintain globally consistent standards.
Read full speech on bis.org ↗

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