A global fight over banking rules is just getting started
Unlock unlimited access to all our award-winning journalism, subscriber-only podcasts and newsletters Subscribe to The Economist Unlock unlimited access to all our award-winning journalism, subscriber-only podcasts and newsletters Your browser does not support the <audio> element. A lmost 18 years ago, amid the global financial crisis, a document was released which was to have a profound impact on the banking system. The snappily named “Principles for Sound Liquidity Risk Management and Supervision” was penned by the Bank for International Settlements (bis), a club of central banks. Walter Bagehot’s “Lombard Street” it was not; the principles are a dull read even for a financial nerd. But the report eventually led to the “Basel III” rules on banking supervision, named after the bis’s Swiss home—and hence to vast new protective capital buffers. The rules are, to most observers, a success. But like many products of the bygone era of multilateralism, they are beginning to fray, as America
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