EU Risks Violating Bank-Capital Rule Pact, Basel Member Says
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The European Union risks violating international bank-capital standards and its implementing law should face a rigorous review by global regulators, a Swedish member of the Basel Committee on Banking Supervision warned.
The EU’s plans to apply a worldwide pact struck by the Basel group fall short in multiple areas, from requirements applied to government debt to treatment of loans to small businesses, Uldis Cerps, executive director for banking at the Swedish Financial Supervisory Authority, said in an interview on Nov. 19. The Basel group is set to probe the EU’s compliance with the rules in a peer review to be completed next year.