A senior member of the Basel Committee on Banking Supervision has warned banks they face "a regulatory tsunami", which is backed by unprecedented political support across the globe. Jose Maria Roldán, the Bank of Spain's director general of banking supervision, said the drivers of the tighter rules that were headed banks' way were neither political pressure nor regulatory panic, but simply the lessons of the crisis. Instead of complaining how unfair this was, the industry "should brace for impact".
Roldán, who chairs the Basel Committee's standards implementation group, told the Risk Minds conference in Geneva that a widening gap between the "expected-loss" approach that banks continued to use in their risk management and the "unexpected-loss" policy approach that regulators were adopting in the wake of the crisis posed "a huge challenge" to the ongoing dialogue between regulators and regulated.
"Going forward, we need to recover a reasonable dialogue with industry," Roldán told the
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