Banks Squeeze Affect International Flows
The international financial crisis has started to think about various regulators on the need to tighten the bankers and various companies in the sector.
Reports of the Ministry of Finance warned that the lack of financial regulation and the possibility of creating financial engineering titles mortgages generated a flooded, uncontrolled growth of the securities market, even beyond the borders of the U.S. economy.
Given this behavior, authorities such as the Basel Committee on Banking Supervision has a series of consultative documents containing regulatory proposals following the above-mentioned crisis.
In this regard, Asobancaria emphasizes that there is a tendency to make more stringent regulatory requirements on capital. This means that from one perspective to adopt more prudent standards from another, say the bankers, may involve some capital requirements for banks that can be expensive.
This suggests that, if adopted the recommendations that are being aired, may mean a deterioration in international capital flows, instead of flowing to profitable projects in emerging economies, should be used to capitalize financial institutions in developed countries.