Banks warn against protectionist reform
GOVERNMENTS and regulators across the world are risking a push towards protectionism in their efforts to shore up the banking system and financial markets, a group of bankers warned yesterday.
A report from the Institute of International Finance, which was written by officials from Deutsche Bank and JP Morgan Chase said that governments must develop “clear strategies for withdrawal” from the private sector to avoid competitive distortions.
The report comes as governments around the world aim to introduce capital requirements and other curbs on banks that found themselves unprepared to handle the global credit crisis and recession in the past year.