GFMA Statement on GHOS Consultative Document Regarding Global Systemically Important Banks -- Surcharge Unwise and Unnecessary

Release Date: 25 June 2011
Contact: Liz Pierce, +1 212 313 1173, lpierce@sifma.org  

GFMA Statement on GHOS Consultative Document Regarding Global Systemically Important Banks -- Surcharge Unwise and Unnecessary 

New York, NY, 25 June 2011 — The Global Financial Markets Association (GFMA) today issued the following statement from Tim Ryan, chief executive officer, following the announcement by the Group of Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision (BCBS), that it has agreed on a consultative document setting out measures for global systemically important banks (G-SIBs). These measures include G-SIB assessment and additional required capital:

"Ensuring the safety and soundness of the global financial system is critical to investor and consumer confidence, economic growth and job creation. Established capital standards via the Basel III agreement and national regulatory efforts in the U.S., with the Dodd-Frank Act, and in Europe, with changes to the EU capital requirements directive and the creation of a crisis management framework, amount to far reaching steps to protect against systemic risk. But excessive capital charges would raise the cost of credit available to businesses and consumers, stifling economic growth.  The imposition of additional capital surcharges on G-SIBs without a full assessment of current regulatory efforts in totality is both unwise and unnecessary. We urge the FSB and the G20 to reconsider this proposal and seek a better understanding of the total impact of current regulatory efforts already put into place.  In responding to the consultation we will be focusing on these aspects.”

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GFMA joins together the common interests of hundreds of financial institutions across the globe. GFMA's mission is to develop policies and strategies for global policy issues in the financial markets, thereby promoting coordinated advocacy efforts across its partner associations. GFMA is partnered with the Association for Financial Markets in Europe (AFME), the Asian Securities and Financial Markets Association (ASIFMA), and, in the United States, the Securities Industry and Financial Markets Association (SIFMA).

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