Banks rebuffed for scare stories on tighter regulation - papers

The Bank for International Settlements (BIS), the Zurich-based club for central banks, says rules requiring lenders to hold more cash on their balance sheets would have only a 'modest' impact on economic growth in the medium term, the Daily Mail reports. Over the longer term the new regime would increase the wealth of nations by sparing taxpayers the cost of bailing out major lenders in another recession, it says. Its assessment rebuts increasing warnings from banks which say the proposed reforms could shatter the fragile economic recovery. Banks claim the flow of credit into the e...