New capital rules: Get the timing right too

Agreement of new capital rules can’t come soon enough but speedy imposition of them might be dangerous for banks and the global economy.

It’s important for the world financial system that the uncertainty around the future scheme of regulation be resolved quickly. That means in the next few weeks or months.

The debate about appropriate capital levels and accounting rules for the banks, and over which bodies should regulate and supervise them and how, both individually and as a system, has been all over the place.

Much more crucial aspects remain to be settled than setting caps on bankers’ pay.

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