Second warning raised this week on banking red tape deadlines
G20 leaders have received their second warning in a week that some jurisdictions may miss deadlines for implementing new banking rules.
Today's report by the Financial Stability Board (FSB), which is chaired by Bank of England governor Mark Carney, notes issues which have been raised with rolling out rules, in particular, those still left to be brought in under Basel III.
The FSB's warnings were trailed in a report published earlier this week by the Basel Committee on Banking Supervision at the Bank for International Settlements (BIS). Problems flagged in the BIS report include difficulties transposing Basel III into domestic legislation because of complicated legal systems and some banks being unable to update their IT systems in time to meet deadlines on reporting requirements.
Read more: UK banks' share prices set new post-referendum highs
The FSB report highlights further problems with talent shortages, as some jurisdictions do not have enough skilled staff to be able to apply and enforce to rules effectively.
However, the FSB also reassured those concerned there were mechanisms in place to help sidestep any major issues. These include extensive monitoring of the implementation process to make sure any red flags are spotted at an early stage, and workshops and peer reviews to help those involved in the implementation process share their experiences.
In a letter to the G20 leaders, which has been sent in advance of a summit in Hangzhou next month, the FSB calls for governments' continued support in implementing the outstanding legislation in a timely manner and highlights that the reforms brought in so far have bolstered the financial system somewhat since the 2008 crisis.
Read more: Here's why RBS has told thousands of clients to find another bank fast
"The system is providing more reliable financial services and has proven resilient in the face of recent shocks," the letter read. "As implementation progresses, the financial sector is increasingly absorbing shocks rather than amplifying them."
The letter also called for help to make sure measures are put in place to bring an end to so-called too-big-to-fail banks.
The FSB warned earlier this month that, even though significant progress had been made in this risk area, there was still outstanding work to be done, especially in relation to better recognising the liquidity and funding needs of larger lenders which find themselves in financial hot water.