As cross-country contacts became more numerous and more complex, so did efforts to create a coherent framework for coordinating the activities of central banks and supervisory authorities in different countries.  The most consequential efforts have taken place under the aegis of the Basel Committee.

The Basel Committee on Banking Supervision (Basel Committee) is proposing to regulate bank liquidity. This marks a major innovation in the Basel approach to international banking regulation.

Basel III proposes to tinker with the risk weights for assets, particularly emphasizing higher risk weights for assets in the trading book that also embody credit and counterparty risk.

The financial crisis in Europe seems very complex, but we understand that how it comes out will have important and perhaps painful consequences for Americans as well as Europeans. As a guide for the perplexed, here are some Qs and As that might shed some light on why we are where we are.

During two closed sessions before the luncheon, committee members discussed the latest in financial regulation issues. At a luncheon briefing following these sessions, SFRC members gave several statements and answered questions.

For many in the U.S., the worrisome events occurring in Europe recall the 2008 financial crisis. If Greece or some other country should fail to meet its debt obligations, the result could be much like the 2007 mortgage meltdown in the United States. Why is all this happening again?

This statement is also available here as an Adobe PDF.

Statement No. 253For Information Contact:Charles W. Calomiris212-854-8748Richard J. Herring215-898-5613George G. Kaufman312-915-7075

On November 5, 2007 the four U.S. bank...

The Shadow Financial Regulatory Committee (SFRC) is a group of publicly recognized independent experts on the financial services industry—including banking, insurance and securities—who meet regularly to study and critique regulatory policies affecting this sector of the economy.