Ann: Stefan Ingves, Chairman of Basel Committee is also governor of Swedish Riksbanken, gave a presentation in Stockholm briefing Swedish bankers about the latest Tianjin meeting attended by banking supervisors and central bankers in the world about the measures taken by the Basel Committee.
"Basel Committee has made an assessment on the capital part of the Basel III Accord, and China is in compliant, and so China meets the requirements, and it has been taking care of the Chinese economy, to get to that point, China has made some adjustment to the local rules and regulations."
Ingves said the goal of Basel Committee is to prevent large risks for banking sector and reduce costs for risks. In the recently held meeting in Tianjin, the committee has endorsed the final details of Basel III's net stable funding ratio. The ratio encourages banks to maintain more stable and longer-term sources of funding.
Ingves stressed the importance of long-term stability of banking sector.
"In the long run it's great benefit to society if the banks are stable, because we do know that if things blow up, it is very costly for the society and it takes many years to take pieces back together, so I think it is better that the banks are stable and that holds for everywhere."
Ingves said the committee will publish a list of global systemically important banks and higher capital conservation buffer will be required for them beginning in 2016 so that the financial world can be more stable.
Ingves also emphasized the importance of transparency in terms of risk prevention and prevention of financial crisis.
For CRI, this is Chen Xuefei reporting from Stockholm.
