Stephen Green made the comments at the G20 meeting of chief executive officers (CEO) in Seoul, ahead of the main meeting of global leaders.
The direction of the regulatory reform, which will require banks to increase their capital base to prevent a repetition of the recent financial crisis, was generally correct, he explained.
Mr Green, who was quoted by Bloomberg, said: âThe process of reform of the banking system has come a long way. The Basel proposals are on the table for the G20 and they will further strengthen the capital base for the system as a whole.
âThereâre two issues to be resolved, notably on liquidity, which is a discussion that will go well into next year. Weâre going to continue that because a healthy banking system is not only about the capital system, but also the liquidity issue.â
He also told reporters that HSBC will continue to use London as the base for its headquarters, despite speculation that it is looking to move its business centre abroad.
By Jim Ottewill