In a recent op-ed published in the Financial Times, Erik Thedéen, Chair of the Basel Committee on Banking Supervision and Governor of the Riksbank, warns that regulatory arbitrage threatens global financial stability unless Basel III is implemented fully and consistently.
"We either strengthen together or weaken apart," he argues, stressing that resilience depends on shared standards rather than fragmented national safeguards. The Basel Committee was created in 1974 after a bank failure revealed the dangers of poor supervisory coordination, Thedéen recounts. Since then, it has worked to establish a common global baseline for internationally active banks. While jurisdictions may go further to reflect local risks, divergence undermines stability, he contends.
This content is available to paid Members of Starling Insights.
If you are a Member of Starling Insights, you can sign in below to access this item.
If you are not a member, please consider joining Starling Insights to support our work and get access to our entire platform. Enjoy hundreds of articles and related content from past editions of the Compendium, special video and print reports, as well as Starling's observations and comments on current issues in culture & conduct risk management.
Join The Discussion
Sign in and be the first to comment.