NY Fed's Dudley to lead BIS committee on global financial markets
William Dudley, president of the Federal Reserve Bank of New York, was named chairman of a unit within the Bank of International Settlements to help monitor global markets. The Switzerland-based BIS said Dudley will head the committee on the global financial system following his appointment to a three-year term by the central bank governors after a meeting in Basel over the weekend. The BIS is in charge of maintaining and updating the Basel accords, providing guidance and requirements for sound banking operations, especially in terms of capital reserves. Dudley replaces Mark Carney, governor of the Bank of Canada, who was named chairman of the Financial Stability Board. Dudley remains head of the New York Fed, a post he assumed when Timothy Geithner became Treasury Secretary in January 2009. Dudley assumes this added post as U.S. banks struggle to boost capital requirements mandated as part of Basel III. The international accords increase the minimum required common-equity capital ratio for banks to 4.5% from 2% and the minimum Tier 1 capital requirement to 6% from 4%. The requirements are being phased beginning Jan. 1, 2013. Write to Jason Philyaw. Follow him on Twitter: @jrphilyaw.