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New banking rules should not increase capital demands 

November 17, 2015

Francesco Canepa, Reuters

New global rules on banking due to be completed next year generally should not result in higher capital demands for euro zone banks, European Central Bank Executive Board member Sabine Lautenschlager said on Tuesday.

Lautenschlager is a member of a Swiss-based committee in charge of shaping the Basel III regulatory framework, including how much capital banks need to set aside to absorb possible losses.

"We should, whatever comes out of Basel III, stay with the overall capital levels as we are now," Lautenschlager told a business conference on Tuesday. "That does not mean that for single banks there won't be some changes."

Lautenschlager expects the Basel committee to finish its new rules, which are due to take full effect in 2019, by the end of next year. She dismissed the notion, put forward by some in the banking industry, that a whole new wave of regulation called Basel IV was coming.

"We don't talk about Basel IV," she said. "That is really far away and nothing that is in discussion." Read more

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