Banking supervisors may seek to simplify Basel III

Banking supervisors may seek to simplify Basel III Guidelines.

Global banking regulators – Basel Committee on Banking Supervision- will examine whether their new rules forcing lenders to hold more capital to absorb any future losses should be simplified after criticism that they are too complex to be effective.

Basel-IIIStefan Ingves, chairman of the Basel Committee on Banking Supervision, said a “vigorous debate” has developed over whether its rules, known as Basel III, strike the right balance between the ease of application and being sophisticated enough to make big banks safer.

The global roll-out of Basel III began in January and will take six years but the European Union and United States have yet to formally implement the accord.

The committee will discuss a review when it meets on Wednesday. But Ingves warned it should not become an excuse to put off implementing Basel III or other reforms already agreed.

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