Headline: BCBS/Thedeen: Regulators Urged to Swiftly Finalize the Last Set of Basel Capital Rules

Erik Thedeen, Chairman of the Basel Committee on Banking Supervision (BCBS) and head of Sweden's central bank, advocated for efforts to enhance risk management standards and urged regulators to swiftly finalize the last set of Basel capital rules. Speaking to financiers in Washington, Thedeen emphasized the importance of the BCBS’s work in coordinating banking regulation worldwide. He criticized the intense lobbying efforts by banks to dilute the stricter new "Basel III Endgame" capital rules.

Thedeen argued that tougher standards would strengthen the global financial system and that governments should "lock in" these benefits as quickly as possible. He downplayed banks' protests that these rules would harm lending, suggesting that the relief banks might gain from weaker rules could entail long-term costs for lenders and the economy. In his speech at the Institute of International Finance (IIF) conference, Thedeen stated, "As with other areas of economic policymaking, perceived short-term gains more than offset by long-term pain. Shaving a few basis points off capital won't unlock a new wave of lending but will weaken your resilience."