New global regulatory framework for banks in place – Basel III
News Following the financial crisis, comprehensive reforms were initiated within the Basel Committee. The aim was to strengthen the resilience of the global financial system. This resulted in a new framework – the Basel III standards – which have now been finalized.
The Riksbank welcomes the standards, which aim to make banks with international operations more resilient to financial crises. Sweden is a small country with a large financial system and substantial international activity. We therefore benefit greatly from robust global minimum standards for banks' capital and liquidity.
"We live in a global economy. Financial crises in one part of the world can easily impact financial stability and economic development in other regions. Banks' problems in other countries can have serious consequences for Sweden. Strengthening the global regulatory framework for banks' capital and liquidity is therefore a positive development for us. Not only does it encourage financial stability globally as well as in Sweden, it also promotes long-term economic growth," says First Deputy Governor of the Riksbank Kerstin af Jochnick.