PHILADELPHIA, Jan. 7 (UPI) -- Federal Reserve Governor Ben Bernanke said Friday there are challenges in implementing banking safety rules worldwide.
In a speech to the American Economic Association in Philadelphia, Bernanke said like most other policy issues, "getting the myriad details right will be critical to the success of (a) new regulatory regime."
Discussions are still under way to come up with the so-called Basel II rules, which will outline global standards on banking operations, including the amount of cash reserves needed to withstand financial shocks.
"The challenge for bank supervisors is to ensure the safety and soundness of banking institutions -- that is, to minimize moral hazard and to protect the deposit insurance -- without inhibiting economically valuable activities or technological innovation by banks," Bernanke said.
