DNB president calls for bank code compliance
The president of the Netherlands Bank, Nout Wellink, has said at a meeting of financial regulators in Basel that banks should comply with the new stricter rules stipulated in the Basel III Package. The code was compiled to prevent a repeat of the international economic crisis which struck financial institutions two years ago.
Mr Willink is a member of the board of the European Central Bank ECB and the Basel Committee on Banking Supervision. In a speech in Singapore on Tuesday, he said the payment of dividends or bonuses which do not meet the code’s criteria should not be allowed even before the new rules come into force. The Basel III agreement, announced earlier this month, states that banks have to triple the amount of capital in their reserves in order to weather financial setbacks. The banks have been given long transition periods to comply with the code.
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