SANTIAGO: Regulators failed to clinch a controversial agreement on new global banking rules aiming to prevent a repeat of the 2008 finance crisis, at talks in Chile on Thursday.

The Basel Committee, a forum of international financial authorities, met with banking supervisors to set new global norms for banking stability.

Committee chairman Stefan Ingves told the gathering in Santiago that delegates were close to a deal after two days of talks.

“Discussions focused on the adjustments necessary to adapt to the new global regulatory framework, the revised standardized approach for credit risk, and the growing and important role of supervisory stress testing,” said the Bank for International Settlements, a global central bank, in a statement.

But the delegates for the time being fell short of their aim of finalizing a deal to tighten capital requirements for banks. Ingves had said Wednesday the committee would oblige some banks to strengthen their capital base to cushion them against financial shocks.

He hoped the members of the forum would approve the new regulations, known as the “Basel III” reforms, in January. Disagreements have threatened to complicate the reforms.

Published in Dawn, December 3rd, 2016