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ECB’s Angeloni Warns Against Blocking Global Bank Rules Deal 

November 18, 2016

Alessandro Speciale & Nicholas Comfort, Bloomberg

A collapse in talks on revamped global capital rules for banks would be a serious mistake, a senior euro-area supervisor said as differences among major banking powers threaten to scupper a deal.

“Failure of the agreement, or a postponement, would send a very bad signal,” Ignazio Angeloni, a member of the European Central Bank’s supervisory board, said in an interview in his Frankfurt office on Thursday. While declining to comment on the outcome of a meeting of rulemakers in Santiago this month, he said negotiations aimed at putting an end to the post-crisis regulatory overhaul are “very uncertain and difficult.”

Regulators will meet from Nov. 28-29 in the Chilean capital to put the final touches on a set of international capital standards, known as Basel III, ahead of a year-end deadline. European regulators and politicians have signaled that they expect profound changes to the proposal by the Basel Committee on Banking Supervision, the international standard-setter. Germany’s Bundesbank has threatened to withdraw from the talks unless key demands are met.

“The post crisis phase has lasted 8 years, and we said many times that this phase of uncertainty should finish soon,” Angeloni said. “If we postpone, we send the opposite signal. I think it is in the interest of everybody to conclude.” Read more

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