Global Bank Regulators Stick to Their Guns in Rebuff to EU
- Basel Chairman Ingves sees output floors in capital package
- Santiago meeting ends without final deal, more talks possible
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Global banking regulators are standing by a key reform of capital rules in defiance of opposition from Europe, potentially complicating efforts to complete work on the post-crisis framework by the end of the year.
Basel Committee on Banking Supervision Chairman Stefan Ingves said “good progress” was made during talks in Santiago, Chile, this week and the “contours” of an agreement on revisions to the capital standards known as Basel III are clear. That includes an “output floor” intended to prevent banks from gaming the rules, a proposal rejected by some top European Union policy makers.