OTC MARKET NEWS Powered By Quantifi

EU said to be ‘noncompliant’ with Basel III rules on capital 

December 3, 2014
Jim Brunsden, Business Day Live

The European Union (EU) faces a rebuke by global regulators for shortcomings in its implementation of bank capital rules, according to two people with knowledge of the matter.

The Basel Committee on Banking Supervision will sign off on a report on EU implementation of its standards at a two-day meeting in Frankfurt that began on Tuesday, said the people, who asked not to be identified because the deliberations are private. A draft circulated to Basel members in advance identifies weaknesses in the EU approach, they said, without specifying areas where the bloc was criticised.

"The EU legislation is not compliant, certainly not on the definition of capital," Nicolas Veron, a fellow at research group Breugel, said on Monday. "What happens next depends crucially on the attitude" of the European Central Bank. "As a supervisor, there are a lot of things the ECB could do to bring the eurozone closer to Basel III compliance," he said.

Read more: Business Day Live

 
Comments are closed on this post.

Subscribe

Submit your email to receive our newsletter

GO