Guersent: EU undermined in Basel
Thursday 6 October 2011 - by Andrew Hickley at the GFS conference in Brussels
Europe must act in a more collective spirit within the influential Basel Committee on Banking Supervision to ensure it is not undermined by new capital and liquidity rules, a senior member of the European Commission has claimed.
While supervisors may disagree on certain aspects, they must decide on a joint list of assets that should be part of the final liquidity arrangements that the Basel committee puts forward, he said.
Under the Basel III agreement, the Basel committee has put forward both short-term and long-term liquidity requirements which will be phased in from 2015 and 2018 respectively.
These are subject to an observational period that will allow the committee to assess if any unintended consequences will stem from the liquidity requirements, allowing them to make changes before banks must adhere to the measures.
The banking industry has previously hit out at the proposed standards, which they say place too much of an emphasis on holding sovereign debt.
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