UPDATE 2-G20-BoE's Carney urges "big push" on bank rules, worries over reform fatigue
(Recasts with more comment, background)
By Randall Palmer
ISTANBUL Feb 9 (Reuters) - Bank of England Governor Mark Carney has urged the G20 to mount a "big push" to implement global regulatory reforms, fearing that governments may be tiring of non-stop rulemaking since the financial crisis six years ago.
Carney was speaking ahead of a meeting of finance ministers and central bankers from the Group of 20 economies (G20), whose regulatory task force, the Financial Stability Board, he chairs.
Since Lehman Brothers bank crashed in September 2008, the FSB has coordinated a welter of new banking and markets rules to make the financial system more resilient to shocks.
In recent months, however, governments have switched focus away from financial stability to reviving economic growth, dampening some of the reform momentum.
The G20 meeting in Turkey's financial capital this week will kick off discussions on whether there are "unintended consequences" from all the new rules. Banks are pushing for changes, arguing that the combination of so many rules is making lending and trading too costly at times.
"I worry about reform fatigue, not surprisingly, both at the FSB and more generally," Carney said at an Institute of International Finance meeting ahead of the G20 gathering.
"Many of the toughest reforms are micro reforms that can have big political coalitions against them and have payoff very far into the future," he said. Continued...