Goldman Sachs CEO Warns of Potential Impact of Basel Proposals
Goldman Sachs Group Inc. Chief Executive Officer David Solomon has warned of the potential impact of Basel proposals on airfares and pensions. The Basel Committee on Banking Supervision, which is made up of central bankers from around the world, is proposing new rules that would require banks to hold more capital against certain types of assets.
Basel Proposals Could Increase Costs for Banks
The Basel proposals, which are still under discussion, could increase costs for banks, which could in turn be passed on to customers. Solomon said that the proposals could have an impact on airfares and pensions, as banks may be less willing to provide financing for these types of investments.
Goldman Sachs Opposes Basel Proposals
Goldman Sachs has been vocal in its opposition to the Basel proposals. The bank has argued that the proposals are too restrictive and could have a negative impact on the global economy. Solomon said that the proposals could lead to a “significant reduction in the availability of credit” and could “have a chilling effect on economic growth.”
Basel Proposals Could Impact Banks’ Ability to Lend
The Basel proposals could also impact banks’ ability to lend. Banks may be less willing to lend to certain types of borrowers, such as small businesses, if they are required to hold more capital against those loans. This could have a negative impact on economic growth, as small businesses are often the engine of job creation.
Basel Proposals Could Lead to Higher Interest Rates
The Basel proposals could also lead to higher interest rates. Banks may be less willing to lend if they are required to hold more capital against those loans. This could lead to higher interest rates, which could in turn make it more difficult for borrowers to obtain financing.
Goldman Sachs Urges Regulators to Consider Impact of Basel Proposals
Goldman Sachs has urged regulators to consider the potential impact of the Basel proposals before they are finalized. Solomon said that the proposals should be “carefully considered” and that regulators should “ensure that the benefits of the proposals outweigh the costs.”
Conclusion
Goldman Sachs CEO David Solomon has warned of the potential impact of Basel proposals on airfares and pensions. The bank has argued that the proposals are too restrictive and could have a negative impact on the global economy. Goldman Sachs has urged regulators to consider the potential impact of the Basel proposals before they are finalized.