Draghi says tougher capital rules must be implemented gradually

10/7/2009 | Reuters

Mario Draghi, head of the Financial Stability Board, discussed the implementation of Basel II regulations in an interview with the Frankfurter Allgemeine Zeitung newspaper. "We have to take into account that too fast an activation could have procyclical consequences. That means that tougher rules on capital can only be done gradually," Draghi said. He said careful consideration also is needed. "Some rules can be introduced immediately and without any big risks ... but when you are talking about defining the rules on the capital base of banks, the Basel II reforms must first and foremost look carefully at the consequences," he said.

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