FSB's too-big-to-fail fix may hinder global growth
Other bodies say FSB should limit requirement to a maximum of 16% of risk-weighted assets
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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.
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