Bank rules may cause cuts

HSBC and Institute of International Finance capital committee chairman Stephen Green says global regulators must agree banking reform by the end of the year and give time for banks to adjust, the FT reports.

The Institute of International Finance is an industry group of 390 banks and insurers. Banks may have to seek insurance on higher risk lending to meet new rules.

Green warned without certainly on proposes regulation and time to adapt, banks would make severe cuts to services.

“If banks don’t have enough capital [to meet the new rules] ... they cut assets. We are kidding ourselves if we think they are only going to cut trading desks and activities that some people say are socially useless. There will be real impacts on real businesses,” Green said.