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EU to Push Basel on Impact of Bank Leverage, Liquidity Rules 

July 18, 2016

Silla Brush, Bloomberg

The European Union will push global bank regulators to ease key elements of a planned rule revamp, including leverage and liquidity standards, according to EU financial-services chief Jonathan Hill, who steps down this week.

Under Hill, the EU opened up the entire financial rule book for review, including contentious issues such as a cap on bankers’ bonuses. In response, the industry registered concerns about the impact of global rules on capital, trade finance, market liquidity and access to clearing, Hill said in his “swan-song” speech in Brussels on Tuesday.

The European Commission, the EU’s executive arm, will write to European Central Bank President Mario Draghi, who heads the governing body of the Basel Committee on Banking Supervision, to “ask for these issues to be looked at again,” Hill said, according to a text of the speech distributed in advance by his office.

Hill, who was sent to Brussels by U.K. Prime Minister David Cameron less than two years ago, said there is a risk to over-regulation of the financial industry and that “we don’t want the stability of the graveyard.” He’s leaving his post after concluding he couldn’t carry on in his role following Britain’s vote last month to secede from the EU. Read more

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