FSB's too-big-to-fail fix may hinder global growth

London

GLOBAL regulators' push to solve the issue of too-big-to-fail banks may hinder economic expansion, according to banking industry groups.

Planned requirements for banks to have a buffer of securities that can be written down in a crisis "will almost certainly raise bank funding costs" and "can be expected to have fallout effects on real-economy financing costs", the Institute of International Finance (IIF) and the Global Financial Markets Association (GFMA) have said.