Basel III: New strains and old debates – challenges for supervisors, risk managers and auditors

by Sabrina I. Pacifici on October 16, 2011

Basel III: New strains and old debates – challenges for supervisors, risk managers and auditors. Speech by Mr Jaime Caruana, General Manager of the BIS, at the Bank of Portugal conference, Lisbon, 14 October 2011.

  • “Full, timely and global implementation of Basel III and other reforms is essential for strengthening the financial system. Responsibility for Basel III does not rest only with the regulatory community. Bank boards, senior management and risk managers all have a clear role in adapting to the new framework. Auditors also play a key part in providing independent and disciplined review and feedback on management’s efforts. But regulation is only part of the broader public policy agenda. We need to continue with the finalisation and implementation of regulatory reform. Safeguarding financial stability, however, requires action in all areas of public policy – including fiscal, monetary and macroprudential measures. These policies need to take a long-term view and to better internalise systemic risk. And, lastly, various institutional reforms and private sector reforms are essential if confidence in the financial system is to be restored. The private sector also has a vital part to play in building a more resilient financial system.”
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