(1 June 2007 – USA) Basel II provisions are too slow and the regulatory framework too inconsistent, according to vice chairman of the Institute of International Finance (IIF), Cees Maas.Speaking at an IIF meeting in Athens, Maas said the association was concerned about the slow pace and inconsistent, global regulatory capital regime occurring in the US.
He said US banking agencies needed to revise their proposals and avoid finalising implementation approaches that could undermine global consistency and risk sensitivity.
‘That is very damaging for international firms with subsidiaries in the United States because there is no level playing field in the United States and outside the United States,’ he said.
The Basel II provisions are set to be adopted by European banks this year with the US to follow a year later, but the IIF is concerned the US could take longer.
The IIF is an international association of more than 350 financial institutions.