Ackermann: Reform costs could explode

 
City A.M. Reporter
The economic cost of tougher global capital rules for banks could explode if further requirements on big banks are not co-ordinated, Deutsche Bank chief executive Josef Ackermann has said.

“There can be no doubt that Basel III alone will have short- to medium-term economic costs. These costs might explode with all the add-ons that are currently being discussed,” Ackermann told a banking regulation conference yesterday. Ackermann said meetings with investors showed they want banks to start meeting Basel III rules by 2013 – the start date leaders of the world’s top economies (G20) are set to endorse next month.

“While regulators have commendably set long transition periods for attaining the new capital ratio, markets... may not be quite so patient.”