Posted by
alfredlester on Monday, March 07, 2011 12:12:50 PM
LONDON (Reuters) - Leading economies by Plans to Reform the Global Financial System Could Disadvantage The Developing World and risk looking outdated By The Time They Are bewitched, a top World Bank officials said on Sunday.
Vincenzo La Via, The Institution&&9;s chief financial officer, Said solutions for advanced economies are Not Necessarily a good fit for Developing Countries.
"Failing to Take the Developing World Seriously enough, and Unintended Consequences Ignoring Imposing one-size-fits-all solutions" could Undermine Efforts to ESTABLISH a more stable global Financial System, "The Via wrote in a guest column for The Financial Times.
"The alternative standard IS That ignores shifting Realities, Threatening The World With more Uncertainty."
Basel III, The New Capital Standards Agreed last year by Regulators to Reduce bank Sector shocks, require banks to hold top-quality capital totaling 7 percent of Their risk-bearing assets.
Said aim Via Emerging Market Economies May Not Be Able to Meet the capital-raising rules to borrow gold Internationally, forcing local banks to compete Against heavy borrowing by advanced economies need a personal loan with bad credit.
Regulators&&9; Approach to Safeguarding the world&&9;s top banks are has Overlooked The Effect Developing Countries and the Global Economy, Said La Via, aussi Who Represents the World Bank of the Financial Stability Board.
"The big Subsidiary in a Developing Country SEEM That May Not important Within icts overall group. Icts Goal Could Be Devastating failure For the local economy and" could spark global contagion. "
Via aussi aussi Said Developing Countries Should Be Given a bigger say in efforts by European and U.S.Regulators to Improve Accounting Standards to Make Sure They Are overall.
"If Developing Countries&&9; Concerns are not taken Into account, They Will Have Little Incentive to Adopt Them. This Could Provide Opportunities for regulatory arbitrage, With riskier Financial Transactions To The moving least-regulated Markets," he said.
(Reporting by Karolina Tagari)
Reform Could Harm Developing Economies: World Bank