According to the Institute of International Finance (IIF), worldwide cohesion on reform could be lost if authorities decide to implement their own changes to rules without working in tandem with other states.
Josef Ackermann, chairman of the IIFâs board of directors and chairman of the management board and the group executive committee of Deutsche Bank, said: âThe resulting fragmentation creates opportunities for regulatory arbitrage, it establishes an uneven environment for international banks, and it will damage the course of economic recovery and growth.
âUnilateral actions will undermine much of the benefits of the multilateral regulatory reforms that have been agreed so far and create uncertainties in the markets.â
He also warned that the implementation of reforms by the Basel Committee could slow the economic recovery seen in global markets.
âJobs that should be created and that need to be created may not be created,â Mr Ackermann added.
The comments follow a meeting of the IIF in Washington over the weekend to discuss regulatory reform ahead of the G20 summit in Seoul next month.
By Jim Ottewill