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Bank capital deal takes shape despite impasse says Basel head 

December 1, 2016

Huw Jones, Reuters

An outline deal on how much capital banks must hold to avoid a repeat of the financial crisis has taken shape, a top regulator said on Wednesday, despite the failure of negotiators at a two-day meeting to reach agreement on global standards.

The European Union had threatened to boycott the proposed rules unless they are diluted and agreeing a deal is seen as a litmus test for a global post-crisis regulatory consensus.

This is showing signs of fraying after a welter of rulemaking, but Stefan Ingves, chairman of the Basel Committee of banking regulators from nearly 30 countries, said "very good" progress was made on an outline deal during a meeting in Chile, which ended on Tuesday.

Basel has set itself an end-of-year deadline for a deal on measures which have been challenged by the EU and Japan who say that the proposed rules would bump up capital requirements too much and risk disturbing the flow of credit to the economy.

Meanwhile, U.S. president-elect Donald Trump has said he will scrap Dodd-Frank, America's main reform of Wall Street, which includes many globally-written rules. Read more

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