The big squeeze

As regulation tightens, banks are taking a firm stand. While acknowledging some rules are necessary, they want some room to manoeuvre. Michael Imeson reports.The law of unintended consequences has once more been at work. International regulators, bent on constraining the global financial services industry with ever more laws and rules, have unwittingly helped to bring about the creation of a powerful counterforce, the International Banking Federation (IbFed). Its main purpose: to protect the vital interests of banks around the world from harmful legislative and regulatory action and other threats.The banking industry accepts that much regulation – domestic as well as international – is necessary and, although there is a great deal of regulation that is of borderline use and cumbersome in its approach, they can live with it.