Global banking industry lobbyists continue to stress the need for global policymakers to co-ordinate their reform efforts.

The Institute of International Finance said Monday that, although global economic recovery has gained momentum in recent months, conditions remain fragile.

“Given the range of important macroeconomic policy and financial regulatory challenges we face it is essential that regional and national policy approaches now be strengthened and concerted by Group of 20 leadership. There is a need for more effective policy co-ordination led by the G20 on such key issues as exchange rates, high budget deficits and debt in numerous mature economies, mounting inflationary pressures in some emerging markets, as well as on outstanding major financial regulatory reforms,” said Charles Dallara, managing director of the IIF.

Additionally, the chair of the IIF’s steering committee on regulatory capital, M. Frédéric Oudéa, noted that while a certain number of financial regulatory reforms have been agreed upon, a lot of work remains in order to achieve a workable regulatory framework.

Oudéa stated that the global financial industry supports a fundamental strengthening of the global regulatory architecture. “We welcome the progress by the Basel Committee and the industry will move forward to meet the challenging task of implementing the new capital requirements,” he said.

However, he also stressed that major concerns exist in the industry over the Basel Committee’s liquidity regime; over the possibility of special capital surcharges on large, complex financial firms; and over the major challenges that remain to create an effective and clear framework to develop a cross-border resolution regime.

“Ensuring a level global playing field to secure efficiencies, to guard against unfair competitive advantage, and to reverse fragmentation in the financial system, all have to be priority objectives for the authorities,” said Oudéa, adding that jurisdictions should avoid adding requirements to agreed global standards

He also called on the G20 to establish a high level task force to address the cross-border resolution issue.

IE