Financial Stability Board Chairman Mark Carney is poised to warn Group of 20 officials about the possibility of fragmentation of the banking system. The problem stems from nations' different ways of dealing with major banks that face collapse. "The fragmentation of the international financial system that results from such nationally focused policies could reduce global growth by putting up barriers to the efficient allocation of capital and liquidity," said Carney, who is also governor of the Bank of England. Proposals include forcing financial institutions to hold subordinated debt and other liabilities that can be written down in an emergency.
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