European countries split over banking rules’ reform
France wants 5% limit to raising capital requirements for banks by the Basel Committee at year-end
LUXEMBOURG — EU countries were at odds on Tuesday over a global reform of banking rules, with divergent views about a cap on increases in banks’ capital buffers that might result from the review.The Basel Committee, banking supervisors from nearly 30 countries, is due to complete its reform, known as Basel 3, by the end of 2016.The new rules are meant to make the sector more financially sound by reducing reliance on internal risk models.European banking groups and regulators have warned against an excessive increase in capital requirements that could affect mostly European banks because they use internal models more than their US rivals, which rely on standardised methodology.Higher capital reserves would raise costs for EU banks.Asked whether there should be a set limit to hikes in capital requirements, Eurogroup president Jeroen Dijsselbloem told reporters before an EU finance ministers’ meeting that discussed the issue: "My approach is different."Reacting to France’s push for a 5...
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