Banks call for colleges of supervisors to better manage risk: IBFed
A more globally coordinated approach to liquidity reporting by banks is needed the International Banking Federation [IBFed] said today. The IBFed called on the Basel Committee to use colleges of supervisors to help tailor liquidity reporting requirements for individual banks, based on a menu of different reporting options.
The IBFed also said that this approach would improve the international stability of the banking system by cutting out much of the multiple reporting that currently goes on and which is costly and introduces unnecessary duplication into the system.
Simon Hills, chair of IBFed’s Basel working party, said:
“The IBFed wants liquidity reporting to be tailored to individual banks because a ‘one size fits all’ approach is not the best way to ensure that banks properly manage risk. This is particularly important for banks operating across international borders which are currently required to complete different reports for the authorities of the different countries in which they operate.
“IBFed’s longer term objective is for regulators to develop a more holistic approach to regulating liquidity, mirroring the way in which internationally active banks tend to manage funding in order to cut costs and avoid liquidity being tied up in different countries, limiting the international flow of funds. “
Mr Hills said the IBFed recognised this was unlikely to happen overnight but developing an internationally harmonised liquidity reporting framework and improving information sharing between regulators would be an important first step towards this ultimate objective.
For further information contact:
BRITISH BANKERS’ ASSOCIATION:
Brian Capon Tel: +44 (0) 207 216 8810 E: brian.capon@bba.org.uk
AMERICAN BANKERS ASSOCIATION
Jonathan Snowling Tel +00 1 202-663-5468 E: jsnowlin@aba.com
CANADIAN BANKERS ASSOCIATION
Maura Drew-Lytle Tel +00 1 416.362 6093 Ext 338 E: MDrewLytle@cba.ca
EUROPEAN BANKING FEDERATION
Florence Ranson +32 (0)2 508 37 34 E: f.ranson@ebf-fbe.eu
JAPANESE BANKERS ASSOCIATION
Masaaki Misawa +81-3-5252-4316 E: misawa@zenginkyo.or.jp
Notes for Editors
1. IBFed released its discussion paper, “Harmonising Liquidity Risk Reporting through Colleges of Supervisors” following the Basel Committee on Banking Supervision’s release of its consultation paper on the proposed “International framework for liquidity risk measurement, standards and monitoring” which can be found at: http://www.bis.org/publ/bcbs165.pdf?noframes=1
