Bank of England's Carney says financial rules cannot be fixed, must be effective


By Francesco CanepaWASHINGTON, April 20 (Reuters) - Bank of England Governor
Mark Carney told bankers on Thursday that financial regulations
devised after the 2008-09 crisis cannot be set in stone, and
must be flexible enough to deal with unintended consequences and
unexpected gaps.
    Speaking in Washington, where U.S. President Donald Trump
plans to pare back banking rules he says hamper growth, Carney
championed a "dynamic" approach to regulation that was flexible
but ensured the global financial system remained resilient.
    "Implementation must not only be effective, it must also be
dynamic," he told a conference hosted by the Institute of
International Finance, a gathering dominated by major banks.
    "Authorities must learn by doing and make adjustments, as
necessary, to optimise our efforts, without compromising on the
level of resilience the reforms are intended to achieve," he
    Carney said that the Financial Stability Board - a grouping
of central banks chaired by Carney - was working on a review of
regulation since the financial crisis.
    "Specifically, it will assess whether G20 reforms are
achieving their intended outcomes, identify any regulatory gaps
or emerging risks, and flag any potential material unintended
consequences," he said.
    Britain's central bank chief was more guarded about national
attempts to review rules, though he did not mention any by name.
    "These are to be welcomed, provided the overall level of
resilience is maintained," he added.
    Carney also drew on language first used in a speech at
Thomson Reuters in London earlier this month, saying the global
financial system was coming to a fork in the road, and that
Britain's departure from the European Union would be a litmus
test for regulators.

 (Writing by David Milliken, editing by Andy Bruce)
 ((; +44 20 7542 5109; Reuters

Keywords: IMF G20/CARNEY

This article appears in: Stocks , Banking and Loans , Politics

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