EU calls on US to follow capital rules

Source:Reuters Published: 2013-1-31 22:58:04

The US should implement Basel III bank capital rules in the same way as Europe does, at the beginning of 2014, the European Union official in charge of regulation said.

"It is essential that the US and Brazil and Russia apply the same rules that we decided together," Michel Barnier, European Commissioner for financial services, explained to a conference Thursday.

"It is a condition for world financial stability, not only for the G20, but for global stability," he said.

The comments confirmed that formal introduction of the rules, forcing banks to roughly triple how much capital they hold compared with pre-crisis levels, will be delayed a year in Europe from the January 2013 start the G20 had agreed.

EU states and the European Parliament are haggling over a law that implements Basel III in the 27-country bloc. Barnier said he expected agreement in coming weeks.

Reuters
 

 



Posted in: Economy

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