Rules intended to strengthen financial position of banks impose undue strain on credit availability, Bank of England's interim Financial Policy Committee member Alastair Clark said Thursday.
The committee should seek to strike a balance between two, he said in a speech to the Society of Business Economists' Annual Conference.
Policy makers may have ended up front-loading rules more than intended. "In our international regulatory initiatives, we may inadvertently have ended up front-loading the regulatory response more than was intended," Clark said.
Even though regulators have given extended timetables for the implementation of Basel III, market pressures have tended to foreshorten the effective period of adjustment, he observed.
"And there is always the risk that, if too relaxed a timetable is adopted, the commitment to reform will progressively evaporate," said Clark.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.