The secretary-general of the world’s largest banking regulatory group, the Basal Committee for Banking Supervision, has warned of the inevitability of another global financial crisis.

 

Secretary-general Stefan Walter has admitted that if the current trends in international finance continue a crisis will be unavoidable.

 

"As long as we continue to have rapid innovation, I think in the future we're again going to have some very complex interactions which we won't understand," Mr. Walter said in an interview with The Australian Financial Review. 

 

"It's a complex system. And therefore, really, I think we shouldn't put all our eggs in the basket of trying to predict a new crisis."

 

Mr. Walter warned that although countries such as Singapore, Canada and Australia had emerged relatively unscathed by the financial meltdown of 2008, they would not be immune to another crisis.

 

“There could be future crises where these countries might be more vulnerable” Mr. Walter warned.

 

The Basal Committee, which has hosted a number of international banking regulatory meetings, has set a number of regulatory standards known as Basel I through Basel III and has been responsible for setting the minimum level of liquidity in the international fractional-reserve banking sector.