The Basel committee of banking regulators has launched new proposals on both capital and liquidity.
The SIFI designation has been adopted in other nations, through the Basel Committee on Banking Supervision.
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The Basel Committee has already proposed higher capital charges for complex trading and exotic securitisations.
So does the Basel committee which is drawing up new rules for banks' capital requirements.
That is a stiffer target than the 7% recommended by the international Basel Committee on Banking Supervision.
Mr Osborne sees the French and German position as a distortion of what the Basel committee agreed.
The Basel Committee is also trying to set minimum capital requirements, which would make banks more able to absorb losses.
I've banged on and on and on in posts here about the importance of what was being discussed by the Basel Committee.
The Basel Committee have already revised their previous suggestions for liquidity of banks so there is a gamble being played out in financial services.
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The group is called the Basel Committee on Banking Supervision (BCBS).
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Meanwhile, only about one-third of Basel Committee on Banking Supervision member nations are likely to enact Basel III reforms by the intended deadline in January.
But this is true only so long as the regulator does not rigidly apply the crude capital standards set in 1988 by the Basel committee on banking supervision.
These new rules which are far stricter on capital and liquidity come from the Basel Committee on Banking Supervision (BCBS), and are known as the Basel III accords.
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The Basel Committee on Banking Supervision, which includes representatives from 27 countries, now wants banks to hold 4.5% common equity against assets plus another 2.5% buffer, for a total of 7%.
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The Basel committee on banking supervision , which sets capital standards for banks around the world, published a consultation document on December 17th that was more stringent than many bankers had expected.
Goldman Sachs and Morgan Stanley separately said they anticipate a new global regulation from the Basel Committee on Banking Supervision that requires they disclose aggregate dollar amounts clawed back in a given year.
New rules on liquidity are certainly needed the Basel Committee of bank regulators is also at work on a scheme but they threaten to reverse two important trends in European banking over the past two decades.
And as the bloggers at Naked Capitalism point out, the Basel committee focused on setting capital levels but did not address liquidity standards or accounting, two other crucial issues facing the banking industry.
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The European Union and the United States have taken some legislative action, followed by a broad agreement reached last month at the Basel Committee for Banking Supervision that should be finalized by the end of this year.
Central bankers who make up the oversight body of the Basel Committee on Banking Supervision announced new capital standards for banks on Sunday, aimed at reducing the risk of another financial crisis that comes from a drying up of banks' liquidity.
Unlike the politicians at Copenhagen, the central bank governors and heads of banking supervision who form the oversight body of the Basel Committee on Banking Supervision - which decides these vital rules for banks - well, they don't exactly court the media.
So, as one senior international regulator said to me, the debacle should reinforce his and his colleagues attempts to force banks to hold vastly more capital as a protection against losses on banks' trading activities (the Basel Committee's " fundamental review of trading book capital requirements").
As part of the package of new standards, banks will be required to increase their minimum common equity requirement from 2% to 4.5%, and will additionally have to hold a capital conservation buffer of 2.5%, "to withstand future periods of stress, " the Basel Committee said in a press release.
There is an oddity at the heart of today's historic agreement by the oversight body of the Basel Committee on Banking Supervision, which for the first time will impose new minimum requirements for the amount of cash and liquid assets that banks all over the world will have to hold.
Mr Sants said it was "no secret" that the FSA and the Bank of England had been arguing on the international Basel Committee and the Financial Stability Board for a bigger increase in the capital held by G-SIFIs or the mega-banks than was desired by regulators from other countries, such as France and Germany.
The response of the Basel Committee, the Financial Stability Board, the European Commission and the G20 has been to devise ever more complicated and more detailed rules to limit the risks to banks and the wider economy of the byzantine complexity of the way banks manage themselves and the astonishing counter-intuitive complexity of products created by financial innovation.
Even so, and as pointed out by Sir Mervyn King - the governor of the Bank of England who chairs the oversight body of the Basel Committee, which is known as the Group of Governors and Heads of Supervision (GHOS) - the fundamental cause of the crises at these banks and others was that they had too little capital to absorb losses.
Both the Switzerland-based Basel Committee on Banking Supervision1 (BCBS) and the Financial Services Authority2 (FSA) in the UK have recently made it clear that when relying on manual processes, desktop applications or key internal data flow systems such as spreadsheets, banks and insurers should have effective controls in place that are consistently applied to manage risks around incorrect, false or even fraudulent data.
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