EU's Barnier says U.S. should respect Basel III
January 31, 2013 8:35 PM EST
The United States should implement Basel III bank capital rules in the same way as Europe does, at the beginning of 2014, the European Union official in charge of regulation said.
"It is essential that the United States and Brasil and Russia apply the same rules that we decided together. It is a condition for world financial stability, not only for the G20, but for global stability," Michel Barnier, European Commissioner for financial services, told a conference on Thursday.
The comments confirmed that formal introduction of the rules, forcing banks to roughly triple how much capital they hold compared with pre-crisis levels, will be delayed a year in Europe from the January 2013 start the G20 had agreed.
EU states and the European Parliament are haggling over a law that implements Basel III in the 27-country bloc. Barnier said he expected agreement in coming weeks.
In November, U.S. regulators decided to delay formal introduction of Basel III because of "the wide range of views" among U.S. banks, concerned they would not be ready by this month.
So far, about 11 of the G20 economies have introduced Basel III, seen as the world's central regulatory response to the 2007-09 financial crisis that meant taxpayer in several countries had to rescue undercapitalized banks.
The EU is keen to synchronize the introduction of Basel III with the United States after it forged ahead to put its predecessor accord, Basel II, into law years before the United States followed suit.
(Reporting By John O'Donnell and Jan Strupczewski; Editing by Dan Lalor)
Most Popular Slideshows
- Top 5 Richest Tennis Athletes
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- 2014 US Open Update (Day 4 - Men's Singles): Murray, Djokovic, Raonic and Isner Advance to 3rd Round [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Apple iWatch is iPhone 6 Accessory on Sept 19 Release Date: 6 Confirmed Specs & Features
- iPhone 6 Release Date Update: 4.7-Inch Model Scores 65.8% In Screen-To-Size Ratio; A Surprise Entry Scales Top Spot [List Attached]
- Canada Vs Russia War Erupts Via Twitter on Russia-Not Russia Maps
- Product Recall Alert: Hewlett-Packard Pulls Out 6M Power Cords from US, Canada Over Fire Hazard Concerns, Australia Also Affected
- ISIS Wants $6.6M and Release of Aafia Siddiqui in Exchange of Head of Female US Humanitarian Aid Worker, 1st American Fighting for Jihadis Dead
- James Foley Torture Involves CIA Waterboarding Technique
- Ukraine Ceasefire Looks Remote As Putin Talks Tough At Meeting With Poroshenko