LONDON (Reuters) - Philipp Hildebrand, vice chairman of the world’s largest money manager BlackRock and former chairman of the Swiss central bank, is concerned the regulatory reform agenda for banks has gone too far and that the industry needs time to digest existing rules.
“Alongside much (higher) levels of capital, a much longer list of requirements have been produced and I worry that they’ve switched the pendulum too far...and are unlikely to address the designated problems,” Hildebrand told delegates at the FT Banking Summit in London on Tuesday.
Hildebrand, who quit as chairman of the Swiss National Bank in January 2012 over a currency trading scandal, also served as vice chairman of the Financial Stability Board, the regulatory task force for the Group of 20 (G20) leading economies.
More than six years after the 2007-09 crisis, the G20 is this month set to approve the last major piece of regulation designed to avoid a repeat of the bank collapses that led to huge taxpayer bailouts in the United States and Europe.
“It is time we let this process play out and crucially regulators also need a time out to assess the impact of all the flurry of measures adopted since the great financial crisis,” Hildebrand said.
Reporting By Anjuli Davies, editing by Kirstin Ridley