HSBC boss calls for greater bank supervision
Monday, November 10, 2008
Despite the growing clamour for stricter rules-based regulation, Mr Flint urged policymakers to stand by – and increase – principles-based oversight when they eventually turn their attention to banking reform.
"Supervision is about having more principles," he said. "We have moved towards regulation and away from supervision and now we need to move back. The challenge will be to resource it, as it's more expensive to supervise the banks."
He added that regulators were more likely to demand greater "standardisation" of banking products, curtailing profitable but often ill-conceived "bespoke" creations, and end the shadow banking market of over-the-counter derivatives, where the vast majority of "toxic" assets have proliferated.
Stuart Gulliver, head of global banking and markets, said moving such derivatives on to an exchange – operating much like the traditional stock market – would be "incredibly welcome".
Read more at Telegraph online
"Supervision is about having more principles," he said. "We have moved towards regulation and away from supervision and now we need to move back. The challenge will be to resource it, as it's more expensive to supervise the banks."
He added that regulators were more likely to demand greater "standardisation" of banking products, curtailing profitable but often ill-conceived "bespoke" creations, and end the shadow banking market of over-the-counter derivatives, where the vast majority of "toxic" assets have proliferated.
Stuart Gulliver, head of global banking and markets, said moving such derivatives on to an exchange – operating much like the traditional stock market – would be "incredibly welcome".
Read more at Telegraph online
Labels: FCC, HSBC, uk mortgage market
