The boss of Standard Chartered Plc said regulators weren’t ready to respond to the March turmoil that hit the banking industry and caused the failure of Credit Suisse Group AG and various US lenders.
(Bloomberg) — The boss of Standard Chartered Plc said regulators weren’t ready to respond to the March turmoil that hit the banking industry and caused the failure of Credit Suisse Group AG and various US lenders.
“I’m pretty sure as we reflect back on this last couple of months that the concern about moral hazard is higher, not lower, because of the lack of preparedness by regulators around the world to deal with a confidence crisis,” Chief Executive Officer Bill Winters said on a call Wednesday with analysts, describing his comments as “editorial opinions.”
The executive said central banks should reconsider the ways they provide liquidity to the market, saying their provision was “highly uncertain” going into the crisis.
“The likelihood of a bad regulatory outcome would have been reduced had there been clarity around the liquidity that central banks would provide against eligible collateral ahead of the crisis in a relatively non-stigmatized way,” Winters said on the call, which followed Standard Chartered’s first-quarter results.
Read More: StanChart Beats Estimates With Higher Rates Boosting Profits (2)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.