April, 21, 2010

The newly appointed head of Japan's Bankers' Association has lashed out at new bank capital rules being proposed by international regulators, saying greater self control among bankers rather than tighter regulations were needed to help avoid further financial crises.The move by international regulators to strengthen capital and liquidity requirements was "one-sided" and "rash," Masayuki Oku, the president of Sumitomo Mitsui Banking Corp who was on Tuesday appointed head of the bankers' association, said in an interview with the Financial Times.

"Japanese banks, to be honest, are very unhappy with the big rule change," he said.Mr Oku's unusually forthcoming comments come as the Basel Committee for Banking Supervision is considering responses from the industry to stringent new rules it proposed last year.The rules have triggered protests from the banking sector, which argues that they are too draconian.

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