Basel Committee proposes tool to prevent future risks in banking sector
Paris, France, Feb. 27 / Trend A.Abbasov /
Introduction of the personal legal liability of a bank's head can become a new tool to prevent future risks in the banking sector.
The chairman of the Basel Committee on Banking Supervision of the Bank for International Settlements Stefan Ingves said this speaking at the Fourth Future of Banking Summit in Paris. The summit is organised by The Economist Conferences sponsored by Azerbaijani PashaBank.
"If the chairman of the board of directors decides to take risks, he should be held personally responsible for it. Introduction of this interesting tool is beginning in Germany," Ingves said.
In addition, he said pouring in capital changing the form of risk and improving bank management are effective measures.
"Given the complexity of the banking system, these decisions should be made in a complex way," Ingves said.
The on Basel Committee Banking Supervision of the Bank for International Settlements was founded in Basel in 1974 by the presidents of the central banks of the Group of Ten (G10).
As of 2012, committee members comprise senior representatives of central banks and financial regulation agencies of Argentina, Australia, Belgium, Brazil, Canada, France, Germany, Hong Kong, India, Indonesia, Italy, Japan, Luxembourg, Mexico, Netherlands, Russia , Saudi Arabia, the U.S., Singapore, Turkey, Sweden, Switzerland, South Africa and South Korea. The European Banking Authority, the European Central Bank, European Commission, Financial Stability Institute and the International Monetary Fund are involved in its work as observers.