The world's top financial authorities released reports showing that costs of requiring banks to hold larger reserves are outweighed by longer-term benefits of stricter regulation of the financial industry. The reports, from the Basel Committee on Banking Supervision and the Financial Stability Board, are meant to counter concerns about regulatory changes. "The analysis shows that the macroeconomic costs of implementing stronger standards are manageable, especially with appropriate phase-in arrangements, while the longer term benefits to financial stability and more stable economic growth are substantial," FSB Chairman Mario Draghi said in a statement.

Related Summaries