Basel III to Result in Stronger Banks; More Resilient Financial System

By John M. Pachkowski, J.D., Editor, CCH Federal Banking Law Reporter and Bank Digest Author, Anti-Money Laundering and Bank Secrecy: Compliance and the USA PATRIOT Act; co-Author CCH Financial Privacy Law Guide and Dodd-Frank Wall Street Reform and Consumer Protection Act—Law, Explanation and Analysis, April 7, 2011.

In his April 6, 2011, speech before the Conference on Basel III, sponsored by the Financial Stability Institute, in Basel, Switzerland, Stefan Walter, Secretary General of Basel Committee on Banking Supervision, noted that although “the banking sector and financial system have now been stabilized … key reforms still need to be carried through if we are to achieve a truly stable banking and financial system.”

Walter’s speech recounted the “the damaging effects of the crisis and why the Basel III reforms are central to promoting financial stability.” He also briefly outlined the key reforms that comprise Basel III and finally focused on “what still needs to be done to ensure longer-term stability.”