IMF supports bank capital proposals

2 August 2011

Britain's intention to facilitate a measure to allow it to go above the set minimums of bank capital requirements has been supported by the International Monetary Fund (IMF).

According to the Financial Times, the IMF is backing the UK's pursuit of additional power in terms of its ability to handle the limits set out in the globally-recognised Basel III agreement.

This has been met with resistance from some policymakers within the European Union, but the IMF - which is comprised of 187 member nations and is led by Christine Lagarde - has stated Britain is correct to seek reform.

Within its report on the matter, the body insisted that the UK has made strides in the recent past to enhance its finances following the economic downturn, meaning the nation is capable of exceeding the terms of Basel III.

However, it added that "more needs to be done to embed and enhance the new processes" with regard to the creation of a new regulatory system.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development