Bank Federation Head Says EU Regulatory Goals Ignore Reality

Christian Clausen, the president of the European Banking Federation, criticized regulators for pursuing a model he said ignores the reality of national needs.

Efforts to harmonize banking standards across borders create challenges for some markets, Clausen said yesterday in an interview in Stockholm. He says a prime example of this is a European Banking Authority proposal that would force some Scandinavian banks to cut their holdings of covered bonds to make room for sovereign debt.