|
|
Public authorities create many barriers to cross-border banking, in the pursuit of other policy goals. Mr Elliott recently tries systematically listing the broad categories of these barriers for a panel at the FSB/IOSCO Roundtable on market fragmentation. He finds 13 of them, a surprisingly high number given the broadness of the categories.
He says: “We should continue to tackle specific issues, such as the setting of internal TLAC requirements; but if we only focus on specifics, without creating a higher level of trust, there will always be other barriers to take their place.
“Let me be clear on two points. First, I recognize that the barriers are normally created to further other policy objectives, so the issue is one of balance, not of clearing away all the barriers.
“Second, I do not anticipate that we will return to the pre-crisis days when there was an arguably naive faith in the global agreements, implicit and explicit.”
However, he believes that the aggregate effect of policies around the world excessively discourages cross-border banking and that it is feasible, with great effort, to create a new social compact that will work better in this area.