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Bank lobby warns EU finance ministers of cost of new capital rules 

June 15, 2016

Maya Nikolaeva, Reuters

New international rules could require European banks to raise hundreds of billions of euros in fresh capital, contrary to assurances from G20 finance ministers earlier this year, the European Banking Federation has warned.

The ministers had said there should be no overall significant increase in capital on top of the Basel III requirements introduced after the financial crisis, the EBF said.

Governments had to spend billions of dollars of taxpayer money to rescue banks that ran into trouble and could have threatened the global financial system if allowed to go under during the 2007-2009 financial meltdown.

Since then, regulators from the Group of 20 economies have been trying to find ways to prevent this happening again.

However EBF president Frederic Oudea, who is also Societe Generale's CEO, warned in a letter to Slovakia's Finance Minister Peter Kazimir, who will chair EU finance ministers' meetings from July, of the danger of going too far. Read more

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