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"While textbooks can display or as old money markets use gold as an other monetary asset today," Mr. Zoellick said photo: REUTERS

To come to a group of 20 Summit this week in Seoul, Mr. Zoellick said that a gold standard updated may help to reorganize the global economy at a time of severe tensions in the currencies and the US monetary policy.

He said that the world needs a new scheme to succeed "Bretton Woods II" floating currency system, which has been in place, given that the system of fixed-rate currency tied to gold collapsed in 1971.

The new system "is probably need to associate the dollar, the euro, the yen, pound sterling and a renminbi (Chinese yuan) moves towards internationalization, then an open capital account," he wrote in the Financial Times.

Mr. Zoellick, "the system should also consider using international gold as a point of reference of the expectations of the market on inflation, deflation and monetary values future," said in a comment piece.

"Although textbooks can display or as old money markets use gold as an other monetary asset today."

The original Bretton Woods agreement was thrown a framework led United States for the stability of the global financial system after the second world war, with the dollar pegged to gold and controls in place to limit the movement of capital.

Gold standard is believed to protect against inflation, but does not flexible monetary policy that many economists feel is essential in the fight against economic shocks.

It has been abandoned by the u.s. President Richard Nixon in 1971 as the value of the dollar collapses over gold. today, gold prices are still riding as investors seek a timeless hedge against inflation and debt the u.s. risks.

Mr. Zoellick has recognized that the forging a new monetary agreement to govern the global economy take time, two years after the worst financial crisis since the 1930s Western. ""But we need to begin", he wrote.

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The reasons, Standard Chartered said, are clear. First, the bank needs the capital to prepare itself for the new regulatory regime under Basel III that has set new targets for the amounts of capital banks must carry on their balance sheet.Second, as the warmer economic climate presents growth opportunities, Standard Chartered needs to have the cash to take advantage.

Not everyone has been convinced and there have been dark mutterings about what is really behind Standard Chartered's move. Is the bank preparing for a transformational acquisition? Is it looking to gain "first-mover advantage" by going to the markets before its rivals? Standard Chartered Is raising the money to pay off liabilities that are not sitting comfortably on its balance sheet?Why, exactly, does a bank that is as securely capitalised as any other suddenly require such an injection of money? The implementation of Basel III, after all, is not until 2019.

"The rationale is rather boringly what we said it is," Peter Sands explains in an exclusive interview with The Sunday Telegraph. "We are constantly thinking about our forward-looking requirements and what is happening on the regulatory front."

"The world is moving on to Basel III pp. new capital ratios."We faced two options. We could either constrain risk-weighted asset growth or we could raise capital now and position ourselves so that we could protect our ability to sixteen the opportunities and reinforce our position in the market of having a strong balance sheet.

"We want to be able to grow and meet the Basel III requirements." "We have taken the view, which is a judgment that most regulators will do more than Basel has so far announced and that many regulators will do it faster."

Mr. Sands is referring to the "race to the top" in regulation where national and pan-national institutions make the security and stability of their territories a key selling point.The Financial Services Authority (FSA) has been one of the toughest in implementing and interpreting the new regulatory environment handed down by Basel III, the G20 and the European Union.

There is a growing expectation that the FSA will now demand a faster timetable on implementation.

"You also get a dynamic between the market and the regulators," Sands says."If the market believes the regulators will move earlier then the market itself will have its own expectations."

"With any judgment call you have to think about the risks of getting of getting it wrong - and the risks of getting this wrong were asymmetric.""The risk of having a bit too much capital too early versus the risk of having not having sufficient capital - the latter had a significant downside."

The organic growth profile of Standard Chartered has certainly been impressive – 19pc compound annual growth rate (CAGR) in income last year and 22pc CAGR in profits.

Sands says that there are many more opportunities around the world of which Standard Chartered will be able to take advantage and that it is "compellingly" benefit for shareholders to back the raising.

"The media may equates the word 'opportunity' with a deal, we don't," he said."For us the most exciting opportunities are organic." This is not about doing major acquisitions, this is emphatically not a war chest.

"We Will continue to do small bolt - on acquisitions?"Absolutely. Any major acquisitions we would have to consider separately and we would be very thoughtful about it - we would have to be very, very convinced that it would add value for shareholders.

"What this rights issue is about is supporting the bank's ability to grow innately." In the years that I have been at the bank, 80pc of the growth has come organically."Given the choice, we would always prefer, dollar for dollar, to invest organically."

Senior figures at the bank say that Nedbank, South African operation that was due to be sold to HSBC for ￡ 5bn until Stuart Gulliver, the new CEO, pulled out of the deal on Friday, is no longer on the radar.In the summer it was revealed that Standard Chartered might be interested in bidding for the bank "if the price was right".

One source said that the rights issue prospectus makes it clear that the use of the proceeds are not for a major purchase and that they would have to raise further funding to support a bid."Of course, you never say never, but can you ever imagine us doing that?" the source said.

Ever since it shook off its tag as the "banana skin" bank in the 1990s after a number of poor lending decisions in the UK and legal rows in Malaysia and India, Standard Chartered has been hyper-charge in its approach.Whatever the reasons for HSBC pulling out of the Nedbank deal, it does not appear that Sands has any appetite to re - enter the battle.

Speaking of where the opportunities are, Sands is clear - the emerging markets, particularly China and Indonesia, Brazil and the rest of South America and the capital flows, whether between North America, Europe and the emerging markets or Asia to Africa, and South America.

"The wholesale banking requirements in savings at this stage of development tends to grow significantly faster than GDP," Sands said.

"We are in markets where GDP is typically between five and 10pc and we are winning market share." He sites Grindlays, India bank as an example that can be followed in other territories.

Standard Chartered bought the bank's operations in 2001. The year before the bank made profits in India of $45 m.Last year profits rolled over $1bn.

In China, profits accumulé $280 m last year and - with Friday's announcement of an agreement from the People Lloyds Bank of China allowing Standard Chartered to operate in the interbank bond market - that figure is rising rapidly.

"The opportunity in China is enormous," says Sands."There is also a broader opportunity, what can be called Greater China - the trade and investment flows in Hong Kong, Taiwan and mainland China.

"It is hard to exaggerate what is going on in terms of the cross-Strait [referring to the Taiwan Strait] relations between Taiwan and the mainland."I was on one of the first direct flights between Shanghai and Taipei in the summer of 2008.There are now 370 flights a week.

"It used to be that Asia was a place to invest in but now increasingly Asia is where the money is coming from."The intra-regional financial flows are growing at an explosive pace and that creates another set of opportunities."There is no shortage in our markets."

With the vast majority of their business abroad (only 2,000 of Standard Chartered's 85,000 employees are based in London) and the increasingly negative tax regime affecting the City, moving Standard Chartered's head-quarters must surely be on the cards?

"London is still the international banking centre of the world," Sands said."And whatever happens we are going to have significant operations here for that reason."Moving home is not something we would rush to do and we have no plan to do.It is a huge distraction.We want to focus on our customers and are delivering for our shareholders.

"We keep it under review [as] the regulatory landscape is still evolving."We will keep a close eye on the relative benefits and disadvantages of our current set up."But, look, moving a bank is not something you do lightly."

For now, he's got Project Snowdrop to execute.And that is enough to be going on with.

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London has lost its luster for Standard Chartered staff. Photo: GETTY

Mr. Sands, who last week announced a ￡ 3 United rights issue compliance support the Bank with the new rules of Basel III capital, revealed "balance of attraction" had moved out of the capital.

At Standard Chartered could consider never deviating from its Chief areas of the city, Mr. Sands replied that, although it was still pending, a major company could be a distraction and would be expensive. Only 2,000 of 85,000 Standard Chartered staff members are based in the United Kingdom.

"Move a bank is a complex issue," he said."Displacement comes quite rapidement.La question is where the growth is happening."For us, for the functions not specifically related to a particular place, people can be in London, Hong Kong, Dubai, Singapore and other endroits.Très few of them chose London.

"Yes, it has been a fall off the coast [in people coming to the United Kingdom] .the ' balance of attraction for people was clearly away from London."

He said that London is still an important financial centre and that even if the Bank is moved, it would still need a large UK based.

"The problem in the context of the UK is that it is a global market for talent and we are witnessing the intense competition for talent in our markets, particularly in places like Asia.

"The international mobility of talent is a pertinent question that the question of the home."

"London is still the international banking centre in the world." And whatever happens, we're going to do an operation important here for this home raison.déplacement is not something that we would rush to do and we do not plan to faire.principalement because it is a huge distraction.?

Talk about the issue of rights, M. Sands denied that he was "the first advantage author" more moving forward markets competitors of the Bank.He said that other banks based in the United Kingdom have different approaches in Basel III and would not necessarily have to raise capital.

"In terms of the rest of the industry, I want too fate," he said.

"Banks are in very different areas, in terms of starting capital positions, business models and prospects for something croissance.La is the engine of our decision-making process is the fact that we are a company with great momentum and growth prospects very importante.Si we had no prospects for growth equation would be different."

Mr. Sands said that the Bank was considering opportunities for growth in Asia, notably China and Indonesia and South America and taking advantage of the huge financial worldwide as stream retrieves the global economy.

He warned that battles on currency and protectionism could be very damaging to the economy mondiale.M.Sands, who was the Summit of the international monetary fund in Washington last weekend also said that the United States should not become obsessed by the value of the yuan.

"Moving the value of the renminbi is not a panacea cure China's woes", he said. "Solutions to America's economic challenges lie at home o.d. ' on the other hand, it is in the interest of China to introduce progressively more flexibility in managing their money.

"Essential to ensure it is discussions around currency becomes not wars, because the protectionism of monetary issues is as dangerous as the protectionist tariffs and goods.

"The key challenge for the Seoul G20 Summit will be to ensure that we do not have a bust-up to the currency".

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Emerging market Bank said that he would focus on organic growth has launched an issue of rights ￡ 3 UK earlier this week to protect themselves from Basel III - set new rules governing the global banking capital.

Standard Chartered said: "we were very clear that our rights issue is aimed at supporting growth organic while also giving the group a greater capacity to meet requirements of funds propres.Cela improved is dedicated to the use of product section of the prospectus."

Organic growth remains the heart of our strategy and we proved that we are extremely disciplined about acquisitions. "It is very difficult to see how we can make a major acquisition in the short and medium term."

Old Mutual actions anglo-sud African insurance group, fell 6.9% after his hopes to sell its stake in Nedbank 52pc 138.3 dealt a heavy blow by HSBC. The proposed transaction would have seen the Bank buy to 70pc of Nedbank's first major foray in more market Africa .HSBC sought to buy the old 52pc game mutual as well as an additional 18pc other investors.

HSBC said that he clings South Africa market and expand its activities in the country .the ' company currently has five branches in South Africa, which means that its presence on the continent is relatively low in its established position for a long time in other emerging regions such as Asia and Latin America.

Sources close to the said agreement HSBC has decided to put an end to talks after due diligence on Nedbank - decide an agreement respond not his "strict acquisition criteria.However, they played the suggestions that the move was related to recent to the company, changes after Bank initiates claiming the conservative move had the characteristics of the new Chairman of HSBC Douglas Flint, who replaced Stephen Green earlier this month .the ' trauma leads also to Stuart Gulliver replaces Michael Geoghegan as executive chef.

Christopher Wheeler, a Mediobanca, analysts said Bloomberg: "they take another look at Nedbank Geoghegan has disappeared and think that the price was rather expensive."

"You can no doubt that HSBC is concerned a capital and who will have played a role in this decision."

The news is a major setback for the old mutual, that bank account, insurance and asset prices in more than 30 pays.La company management operations was under pressure to sell parts of his financial empire in recent months and ended August the Elimination of its U.S. life insurance activities

In a statement, the company said: "Old life is assessing its participation in Nedbank alternatives and make further announcements in due time.

Julian Roberts, Director of the company is supposed to be shocked by the decision of HSBC.

He insisted in addition measures would be taken to the structure of the company.

Earlier this year, he said the Group would not seek to make acquisitions and would organically grow its core business of "simplifying the business".

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No doubt the Bank, seeking to impress many Asian followers of Liverpool, will streamline the situation to the argument of "any publicity is good publicity". A new American owners Club will perhaps make a difference. But defeat artists as Blackpool is not the Standard Chartered waiting. He is familiar with success, reminded us yesterday when he unveiled a ￡ 3 United rights issue.

The company has delivered composed in income for the past annual 19pc growth 22pc profits and seven years. But it is obvious that Peter Sands, Chief Executive, concluded that the only way he can keep what is investing more cash for hunting opportunities for growth that he sees in the core markets Asian Standard Chartered.But he also knows that the Basel Committee on banking supervision could make it harder by requiring that a larger share of the capital of the Bank is preserved on its balance sheet for a day of rain, gain side rien.Le result is the need for the Bank to meet these conflicting demands more capital.

There is a sense that Standard Chartered has jumped the gun, because of the relaxed timetable for implementation of the new regime of Basel. But if, as indicated in decision of sands, other banks will have to follow adapt it is tactically astute to its request for funds first.

This will bring financial soundness of the Bank in line with the rival Asian banks while shareholders have reason to be confident that Sands will decide what is promising in terms of croissance.Je doubt that investors, desperate for a good news story, seriously think about history of Asian growth sands.His argument is Asia, as fast as the average growth rate of world are supplemented by growth faster than local banking markets.And Standard Chartered takes market share in this sector as well.

So what could possibly go wrong? not much, except for the slight odour of pride which is now from Standard Chartered.La Bank won praise for the treatment of the crisis and Sands made a considerable contribution of its own in the formulation of the 2008 Treasury bailout plan.

But, like football club sponsors now has noted, the mighty can fall disgrace and Standard Chartered Board now faces the challenge to keep feet on Earth for each.

Damian.Reece@Telegraph.co.UK

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Believed that the Bank mobilize funds for advance regulatory changes introduced in the wake of the financial crisis and the subsequent recession. It is in solid financial health, recently posted profits of $3. 12bn for the six months to June.

Peter Sands, Chief Executive of Standard Chartered has among a number of bankers top page of the Conference of the Institute of international finance in Washington, who claimed that the markets are require capital ratios elevator industry to new levels of regulatory much more quickly than expected last week.

Global regulatory officials gave eight years to comply but shareholders, counterparties and debt investors - banks as well as supervisors at United Kingdom, and the United States Switzerland - appetite for banks to implement the policy much earlier.

Standard Chartered has a base level 9pc capital ratio.Although it is already above the minimum targeted 7pc, large banks as Standard Chartered are being hit with a systemic risk premium of up to 4pc over capital.Un another 2pc will be added to the booms as buffer counter-cyclical to protect themselves against subsequent busts.

Effective capital ratios will be even higher because the assets are receiving higher risk weights, which means that more than capital must be set against them.In total, banks might seek effective basic capital ratios of until 15pc standards in force.

A livestock equity of $emissions rising capital base of Standard Chartered to approximately 10 5pc by adding to $30bn stock .the Bank Bank is a value of ￡ remained.

A strong balance sheet will allow also to Mr. Sands flexibility to continue the Banque.Au expansion plans during last five years, Standard Chartered has transformed its scale with a number of small but significant purchasing area market émergentes.Les new acquisitions are likely to be in far-eastern, Indian, African and Middle East markets.

Its dominant position in Africa is disputed by HSBC buys 70pc participation in the fourth largest bank Nedbank, South Africa.

Earlier in the day, Standard Chartered shares rose 3pc to ￡ 19.08 on JP Morgan rumours that might be on the table a soumission.La Bank has refused to comment.

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The Bank recently posting record profits in first half of $3. 12bn (￡ 1. 97bn), said that he was to mobilize funds to get ahead of the regulatory changes introduced in the wake of the financial crisis and the subsequent recession.

Investors are offered 1 new share to ￡ country for each 8 existing shares that they hold .c ' is a 33pc discount to the course of closing stock Tuesday.

Peter Sands, Executive Director of Standard Chartered, said: "We let this problem of rights so that we can continue our strong organic growth record and take full advantage of these possibilities, so that at the same time, in preparation for likely needs resulting from the implementation of Basel III. capital increases"

For the past five years, the Bank changed its scale with a number of small purchases but significant emerging in Asia, Africa and the Middle East .his dominance in Africa market is disputed by HSBC buys participation in the fourth largest bank Nedbank, 70pc South Africa.

"This is not a warchest to acquisitions." "This is a strategy based on the growth of the orgainic," underlined Mr. Sands.

He said the question of rights was made from a position of financial strength - the Bank has continued to make good in the third quarter progress - and while he was still uncertainty concerning the requirements of Basel III, the Bank believes that fundraising is quite meet the requirements.

It was better to being too soon, as being too late, he said.

Standard Chartered has a base level 9pc capital ratio.Although it is already above the minimum targeted 7pc, large banks as Standard Chartered are being hit with a systemic risk premium of up to 4pc over capital.Un another 2pc will be added to the booms as buffer counter-cyclical to protect themselves against subsequent busts.

The Commission considers that the impact of the rights issue will be to increase the ratio of capital base level 1 forecast by approximately 2 percentage points, adding to $30bn stock .the Bank Bank is a value of ￡ remained.

Mr. Sands was among a number of bankers top page of the Conference of the Institute of international finance in Washington, who claimed that the markets are require capital ratios elevator industry to new levels of regulatory much more quickly than expected last week.

Global regulatory officials gave eight years to comply but shareholders, counterparties and debt investors - banks as well as supervisors at United Kingdom, and the United States Switzerland - appetite for banks to implement the policy much earlier.

Temasek, main shareholder of the company intends to resume its rights issue fully subscribed by JP Morgan Cazenove, Goldman Sachs and UBS.Administration also take their rights.

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