The writer is chair of the Basel Committee on Banking Supervision and governor of the Riksbank
In a world increasingly fragmenting along geopolitical lines, the true test of financial resilience lies not in national safeguards but in a willingness to build global trust through shared standards. We either strengthen together or weaken apart. That is why regulators and market participants in banking should push for convergence, not for arbitrage in the adoption of Basel III accords on bank regulation.
The Basel Committee on Banking Supervision was born out of crisis. In 1974, a bank failure exposed the frailties of a system that lacked a global structure for timely information sharing and co-operation on supervisory and regulatory matters. The result was confusion, contagion and lost confidence. Since then, the committee has sought to build a global regulatory level-playing field for internationally active banks. Together, we have developed common standards that reflect the diverse perspectives of our membership. These standards have evolved in response to the changing financial landscape.