Big banks, under pressure, on defense at Davos
they can overlap for banks that do business in more than one country. And there is no one global standard that would level the playing field, and prevent banks from simply moving their operations to places that allowed high-risk practices.
Plus the increased costs involved in following the new rules will hit profits and could even shrink the availability of credit.
To add to the mix, the Basel III rules, which have been accepted by both bank critics and bankers, will not come into effect until 2019.
That sense of dissatisfaction about the state of banks and the attempts to regulate them burst through during the Davos global finance panel.
Min Zhu, the deputy managing director of the International Monetary Fund, said the banking industry was "still too big'' compared to the size of the global economy. Min also warned that other financial organizations, such as hedge funds, are playing a too-large, too-little regulated role known as "shadow banking'' where risky practices that could cause a crisis remain beyond a regulator's reach.
“All the debate going on, and the financial sector has not changed very much. We're not safer yet. Five years on, we are still debating whether we have too much or too little regulation,'' he said.
“I would say the financial sector has a long way to go.''
Axel Weber, chairman of Swiss bank UBS and former head of Germany's central bank, added that global regulators ``have clearly made up their minds that banks are too big.''
Dimon complained about ``huge
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