Banking groups in Europe, the U.S., Australia and Canada have joined forces to establish a new international association to address global legislative, regulatory and other issues such as capital adequacy and anti-money laundering.

The new International Banking Federation, which will be based in London will represent more than 18,000 banks with 275,000 branches, including around 700 of the world’s top 1000 banks, which alone manage worldwide assets of over US$31 trillion.

The IBF went into operation March 30. It will be chaired by Ian Mullen, initially in his capacity as chairman of the European Banking Federation Executive Committee. Board members include Donald Ogilvie, president and chief executive officer of the American Bankers Association, David Bell, chief executive of the Australian Bankers’ Association, and Raymond Protti, president and CEO of the Canadian Bankers Association.

Mullen said that during the past two years, the list of global issues that require collective industry attention has been growing — and some of these will be permanent agenda items for the new federation. He mentioned issues such as capital adequacy, anti-money laundering and other financial crime, corporate governance and business continuity planning.

“The chief executive officers of the banking associations have met informally for a number of years but the time has now arrived where we need to strengthen the industry voice when dealing with supra-national policy and regulation,” Mullen said in a release.

Protti noted that providers of financial services, wherever based, are operating in diverse business and regulatory environments. “Banks need to consider where new legislation is coming from and how they can carry on their business effectively,” he said.

“Individual countries’ trade associations, like the CBA, will continue to work with governments and regulators in their own jurisdictions, Protti said. “However, banks need to be represented at a global level as well.”