FirstFT: Global regulators set sights on stricter banking rules

After recent financial turmoil has shaken bank confidence and rocked markets on both sides of the Atlantic, global regulators are considering stronger rules for smaller banks and prompting all lenders to make deposits faster. I am asking you to prepare for

Policymakers gathering in Washington for the IMF and World Bank spring meetings last week told the Financial Times that the Basel Committee on Banking Supervision, which sets global standards, is facing problems exposed by the collapse of Silicon Valley banks. He said he was focused.

This could mean forcing medium-sized lenders, such as SVB and the now-defunct signatories, to comply with Basel rules on capital and liquidity, said the talks. A source told the FT. Currently, this rule applies only to US “internationally active” banks. This is a group limited to the largest institutions. No timeframe has been set for these changes.

The Bank of England is also considering a major overhaul of its deposit guarantee scheme after the collapse of the SVB forced billions of pounds out of the bankrupt UK arm of lenders.

People briefed on the Bank of England’s thinking said the reform would include higher compensation levels for businesses and the need for banks to enter the system to ensure quicker access to cash in the event of a financial institution failure. This could include mandating pre-financing of

Here are some things to keep in mind today:

• Earnings: Retail broker Charles Schwab is the latest financial services firm to report earnings.

• Financial policy: Richmond Fed President Thomas Birkin is scheduled to speak in Virginia.

• SpaceX: Elon Musk’s company will be the first to attempt the launch of Starship, the most powerful rocket ever launched into space.

Today we launch our new newsletter, One Must-Read, featuring one noteworthy piece of journalism every weekday. If you haven’t already done so, sign up here.

5 more top stories

1. A Delaware judge delayed the start of the Fox News-Dominion Voting Systems trial by a day, raising hopes of a last-minute settlement. The $1.6 billion defamation lawsuit was set to begin today, but in a statement issued last night, Judge Eric Davis said the trial would begin tomorrow. Please look.

2. Chinese new home prices rose at the fastest pace in 21 months in March, It’s the latest example of how quickly the world’s second largest economy is recovering after the end of its zero-coronavirus policy. The latest bright spot ahead of the first quarter GDP due to be released tomorrow.

3. Nearly 100 civilians have died in Sudan in “bloody and chaotic fighting” between the army and rival militia groups. The United Nations, US, EU, Russia and China urged both sides to stop the clashes that broke out on Saturday. Read more about our efforts to broker peace.

4. Merck has agreed to acquire San Diego-based Prometheus Biosciences for $10.8 billion U.S. pharmaceutical companies are ramping up pipelines ahead of potential loss of exclusivity for the decade’s best-selling cancer drugs.

5. The G7 countries have committed to “accelerate the phasing out of undiminished fossil fuels to achieve net zero energy system by 2050”. At the end of yesterday’s summit in Sapporo, Japan. The agreement, reached after weeks of negotiations, claims the world’s most advanced economies withdrew their climate change goals because of the war in Ukraine.

interview on monday

Mohamed Araldi, who fulfilled his dream of becoming a pilot and became Oman’s Air Force Secretary, has had a tough time balancing his need for speed as a teenager and the current position of InvestCorp, a fast-growing Bahrain-based investment manager. We believe that there is a relationship between the role of “Pushing the boundaries, that’s what I still try to do,” the 61-year-old told Senior Business his writer Andrew Hill. Read the full interview.

I am also reading . .

• Military Briefing: The stakes couldn’t be higher as the first phase of Ukraine’s spring counterattack approaches.

• US Immigration: A revival of immigration dynamism could mean good things for America’s growth and its fight against inflation, writes Rana Foroohar.

• Gates Foundation: The Bill & Melinda Gates Foundation is making an extraordinary investment in a French biotech start-up’s cancer experiment.

chart of the day

US President Joe Biden’s extensive subsidies under the Chip and Inflation Control Act are beginning to bear fruit. Since August, investment in semiconductor and cleantech production has nearly doubled from 2021 and almost 20 times from 2019, according to FT analysis.

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stay away from the news

As cheap flights lose their appeal, sleeper trains are being reborn as a greener and more romantic alternative. Read more about it in Weekend Essays.

Tee Zhuo and Annie Jonas