July 23, 2009

Big bankers call for more globalization

International banking institutions must not be abandoned because of fears stemming from the global financial crisis, a global banking group said Thursday.

We are operating in a globally interconnected world where we need to strengthen the system's capacity to minimize the risks and to maximize the benefits of the interconnected global marketplace, Institute of International Finance Chairman Josef Ackermann said.

Ackermann, who is also Deutsche Bank AG chief executive officer, said the Washington trade group -- whose members include most of the world's largest commercial and investment banks, as well as a growing number of insurance companies and investment management firms -- recognizes that far-reaching regulatory and industry reforms are necessary to guard against systemic vulnerabilities.

Reversing the globalization of capitalism is not the answer, even if a return to 'business as usual' is not an option, Ackerman said.

We need to establish a more resilient and stable international financial system, which stimulates and encourages innovation and fosters competition to provide cost effective services to customers, he said.

The group believes international coordination among regulators and supervisors is essential, he said.