The uncertain and uneven recovery has led to calls in some quarters to dilute or slow the financial reform initiatives. While there may be a case for some back loading of difficult adjustments to strengthen the recovery of the financial sector, any weakness in our resolve or commitment to reform will sow the seeds for a fresh crisis down the line.
The key task is therefore to fully implement what has been agreed in a cooperative manner. All G 20 members have committed to the implementation of the Basel III package. However, major jurisdictions have come out with their own regulatory standards. It is important that there is no disharmony that could be confusing. We need to guard against the possibility of regulatory arbitrage.