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Basel Capital Revamp Endorsed Without Assurance Sought by EU

  • Regulator’s oversight body endorses ‘broad direction’ of work
  • Basel aims to finish capital framework revision this year
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The central bank governors overseeing the Basel Committee on Banking Supervision backed the “broad direction” of the regulator’s bank capital-rule revamp, while stopping short of providing assurances sought by Europe on the overhaul’s impact.

The oversight body led by European Central Bank President Mario Draghi met on Sept. 11 and reiterated its instruction to the Basel Committee to “focus on not significantly increasing overall capital requirements” as it wraps up work on the framework known as Basel III. That promise, first made in January, left open the possibility that individual countries, regions or banks could face a marked increase.