(Reuters) – The world’s leading banking regulator called for more transparency in hedge funds, saying banks needed to control just how much potential risk they faced when dealing with thecontroversial industry.
Jaime Caruana, Chairman of the Basel Committee on Banking Supervision, said it was crucial for banks to be able to weigh up possible risks posed by the booming hedge fund industry, which operates largely outside the view of regulators.
“Efforts to improve the level and the quality of the information disclosed are necessary in order to allow investors and market participants to properly asses the risks they are assuming,” Caruana said in an interview with Reuters.
“As banking supervisors, we should emphasize that banking organisations measure and control their exposures to hedge funds accurately,” he said.
