The Bank of England has published the closing remarks that its governor, Mark Carney, made at the Open Forum. In his remarks Mr Carney discusses a number of “takeaways” following the Open Forum including that the level of trust in institutions and market mechanisms is quite low.
On capital regulation, Mr Carney states:
“I’ll add a very clear message on behalf of those of us on the regulatory side to the bankers in the room and those watching from outside: there is no Basel IV. There is no other big wave of capital regulation coming. With the agreement on total loss absorbency capacity, the last pieces of the puzzle have been put in place.”
“It is true that we do have some adjustments to risk weights; and there will always be things to iron out, but I repeat there is no big other prudential regulatory wave for the banking sector. As Andrew Bailey made clear in one of the break-out sessions I attended, the focus now is about greater certainty and adjusting business models to these new realities. As Andrew noted, given the scale of the regulatory effort, that means that business models pre-crisis are not necessarily going to be very effective now.”
View Closing remarks to the Bank of England Open Forum, 11 November 2015