GLOBAL plans to implement tough capital rules on banks will have no impact on the local banking sector, according to Association of Guernsey Banks chairman Steve Watts.

Last weekend’s G20 summit in Toronto saw world leaders agree that new rules were needed to force banks to keep sufficient funds fenced off to guard against a future crisis.

And although the global group is keen to follow these proposals through, it has watered down the previous target of seeing these new capital standards introduced by the end of 2012. Instead, that date has now been downgraded to an ‘aim’, while the ratio of capital a bank needs to hold was still being worked out.

Mr Watts (pictured) said the AGB had also noted that the G20 had dropped its plans for a global levy on banks and was instead leaving it up to individual nations, with the UK one of those announcing it was going ahead with it.

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