| Most supranationals and agencies have been in place for about 50 years and are a key part of the world’s financial infrastructure. They are still getting bigger and their lending has a profound impact on the commercial sector. But they are not governed by the same rules as commercial banks and their proper role is a matter of debate. |
MUCH OF THE argument over the new banking regulatory regimes initiated in the past few years has centred on ensuring a level playing field. Nevertheless, no one thought to include the supranationals and agencies in these discussions. In 2007 the larger European banks will be regulated under Basle II. But KfW, Instituto de Crédito Oficial, Caisse des Dépôts et Consignations, Cassa Depositi e Prestiti, OKB and supranationals such as the European Investment Bank are all institutions to which the EU’s Banking Consolidation Directive applies only for limited supervisory purposes. They...
