EU Banks May Face Capital Hit in Basel Revamp, Dijsselbloem Says
- Dutch finance minister says internal models must be robust
- Bundesbank’s Dombret said no increase should be starting point
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Dutch Finance Minister Jeroen Dijsselbloem said capital requirements for some banks may have to increase under new global rules, striking a dissonant note amid a growing European consensus on softening the impact of the revamped framework.
As it wraps up the post-crisis capital framework, the Basel Committee on Banking Supervision must ensure that banks’ internal models, used to measure asset risk, are of “sufficient quality so we don’t continue to conceal risk,” Dijsselbloem told reporters in Luxembourg on Tuesday. “So I can’t rule out that the consequence could be that individual banks in Europe will face higher capital requirements.”