Basel Committee Chair Warns International Supervisory Cooperation Is Growing Harder as Financial Risks Interconnect
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Tedeen, chair of the Basel Committee on Banking Supervision, which sets international standards for bank regulation, said on the 30th that international cooperation among banking supervisory authorities is becoming increasingly difficult as financial risks grow more interconnected. He warned that fragmented supervisory frameworks could make it harder to grasp and manage risks spanning multiple countries and regions, and stressed the importance of central bank independence. Speaking at the 24th International Conference of Banking Supervisors held in Bali, Tedeen said geopolitical tensions are making the outlook even more uncertain. He noted that such tensions have already raised doubts about how far supervisory authorities and related institutions can cooperate in the future, from risks associated with artificial intelligence to responding to future financial crises. "Fragmentation of the supervisory framework ultimately leads to financial fragmentation," he said. "Information gaps widen, and opportunities to exploit differences in regulation increase. It also becomes harder to grasp and manage risks that cross borders."