His comments added to a European Banking Federation warning that new international rules under review could require European banks to raise hundreds of billions of euros in fresh capital.
The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, as well as finance ministers of the G20 said earlier this year that there should be no overall significant increase in capital on top of the Basel III requirements introduced after the 2007-08 financial crisis.
The French central bank governor called on the Basel Committee not to put good practices in some countries at a disadvantage, referring to the French model of providing mortgage loans depending on borrowers' repayment capacity.
"The work of the Basel (Committee) should not question virtuous national specificities," Villeroy said.
"The finalisation of Basel III should offer banks a long-term and clear framework," he told a conference in Paris, calling for a finalisation by the end of the year.
"There can't be a Basel IV - the overuse of catchy phrases like this does not always reflect well on their users."
Full article
© Reuters
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article