Basel III needs to address liquidity requirements, HSBC chairman claims

11 November 2010

The new Basel III regulations need to do more to address liquidity requirements of banks, the outgoing chairman at HSBC has claimed.

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: “The 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.

“There’re two issues to be resolved, notably on liquidity, which is a discussion that will go well into next year. We’re going to continue that because a healthy banking system is not only about the capital system, but also the liquidity issue.”

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

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