Barnier bites back over Basel jibes
Monday 12 September 2011 - by Andrew Hickley
EU internal markets commissioner Michel Barnier has hit back at suggestions that the US should not endorse the higher capital requirements laid out under the Basel III accord.
Barnier urged US organisations to "not to have a short memory" and stick to international standards, as the EU did recently when transposing a fourth version of its capital requirements directive.
The European commissioner added that he is confident the US will ultimately take up their international commitment to endorse the measures.
Barnier's statement also commended the UK Independent Commission on Banking's recommendation that its large banks implement a ring-fence between their investment and retail operations.
He did however urge that supervision of both parts of the banks will remain "essential" under the proposals. "A ring fenced approach will still require strong supervision, both of retail and investment banks," he declared.
A senior commission source also brushed off ICB criticisms of the maximum harmonisation measure included under CRD IV.
Some commentators fear the provision may block the ICB's recommendation that banks hold 10 per cent of their common equity, well above the 7 per cent figure laid out under Basel III.
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