Don’t demean push for higher bank stability standards

From Dr Peter D. Hahn.

Sir, You fall into an industry trap when you report that “some bankers argue that an EU-wide rule would prevent the UK from adding expensive additional requirements, a process known as “gold plating”” (“IMF backs UK push on tighter bank rules”, June 7).

A term too often used, “gold plating” has the ring of cheap and unnecessary; it isn’t gold and must be wasteful. The use of such terms demeans or distracts from an argument before it begins.

This debate is about whether the UK should have higher bank stability standards. I don’t expect to see the FT reporting that “some bankers argue that the UK must regulate to the lowest common denominator”, which of course could be a way of describing uniform international standards.

Higher standards have removed diseases from our hospitals, raised safety levels in many industries and, perhaps most importantly for industry, provided a competitive advantage for successful international expansion. Higher standards shouldn’t be demeaned before being discussed.

Peter D. Hahn,

Cass Business School,

London EC1, UK