After nearly a week of tough talking in Davos, the world’s top bankers are attempting to find common ground on the need for global financial regulations.
A closed-door meeting of dozens of financial sector heavyweights on the sidelines of the World Economic Forum made some progress on bank capital requirements, participants said.
But the bankers and regulators skirted the issue of a global insurance levy to make sure that banks – not taxpayers – pay for future mistakes.
The head of Deutsche Bank, Josef Ackermann, also warned that problems could arise when booster measures are ended.
“The banking sector is clearly benefiting from the tremendous initiatives being taken by governments and by central banks. But there’s also a risk of the timing and the impact of the exit strategies which is an unknown to all of us because we’ve never gone through that,” he said.
Britain’s Chancellor of the Exchequer, Alistair Darling, who is in charge of the country’s finances, said the talks among bankers and regulators had reached some common ground and called for quick action to put areas of agreement into practice.