Lack of international cooperation will hinder economic recovery | Howard Davies
There has been no consistency to the regulatory changes during the coronavirus crisis
The years after the 2007-09 global financial crisis were characterised by an orgy of rule-making by financial regulators around the world to address the weaknesses exposed by the upheavals. Importantly, a renamed and reinforced Financial Stability Board (FSB), reporting to a series of G20 summits, oversaw the process of reregulation.
Despite the economic impact of the measures and the complexity of making rules to suit the needs of different financial systems, a remarkable degree of consistency was achieved. While the US had never fully implemented the Basel II framework, Basel III – featuring, for example, higher reserve requirements – found its way, in more or less recognisable form, into the rulebooks of all the different US banking regulators.