Tag: EU countries

A group of bank supervisors from across the European Union called on Tuesday for the bloc to implement global banking rules agreed to prevent a repeat of the global financial crisis.

In an open letter to the European Commission, nearly two dozens central banks and regulators defended the Basel III rules, which have been the object of intense lobbying from a banking industry keen to reduce its capital requirements.

“We, as prudential supervisors and central banks in the EU, very much support a full, timely and consistent implementation of all aspects of this framework,” the signatories said.

“The pandemic shows that more resilient banks are better able to support the real economy, even during times of crisis.”

The signatories came out in defence of the “output floor”, which limits banks’ discretion in setting their own capital requirements and of a standardised approach to credit risk, while adding that EU-specific deviations should be minimised.

Signatories included institutions from all large EU countries with the exception of France. (Reporting By Francesco Canepa Editing by Balazs Koranyi)