StanChart chief wary of rules change - report

Tue 17 Nov, 2009 03:54

LONDON (Reuters) - Peter Sands, the chief executive of Standard Chartered Plc (STAN.L), said in an interview with the Financial Times that, if current regulatory reforms are implemented, the costs will be borne by the economy.

Speaking ahead of the expected announcement on Tuesday to grant the Financial Services Authority more power, the head of one of Asia's leading banks said policymakers were 'kidding themselves' if they thought higher capital and liquidity requirements would be absorbed by banks and shareholders.

"The reality is that a lot of that incremental cost will just get passed on to their customers," he said.

In the interview, Sands said he thinks the economic crisis if far from over and that the blame for it should not lie just on banks, but rather on macroeconomic problems as well.

"If we don't do something about these economic problems, we run the risk of further problems in the future," he said, noting potential risks associated with large amounts of borrowing.

"I don't think there is enough prioritisation in the regulatory debate right now," he said, adding he would focus on capital and liquidity.

(Reporting by Sharon Lindores; editing by Andre Grenon)