LONDON (Reuters) - Barriers to cooperation between different countries' financial regulators remain high, despite the shared nature of many risks they face, Bank of England deputy governor Minouche Shafik said on Monday.
Shafik, who is responsible for financial markets at the British central bank, said that even if regulators could control the rate of lending growth by domestic banks, foreign lending still had a major influence on the risk of financial crises.
But regulators were understandably reluctant to think beyond their own borders, she said at a conference in Hong Kong hosted by the BoE, the International Monetary Fund, and the Hong Kong Monetary Authority.
"The unequal distribution of benefits from globalization has increased scepticism about international co-operation," she said. "The body of evidence required to justify including the interests of other nations in the setting of domestic policy is understandably large."