A new draft of proposed international bank regulation is unacceptable for Germany because the rules might restrict lending by the country’s banks, the head of Germany’s financial regulatory agency said.
The Basel Committee of bank supervisors from nearly 30 countries intends to deliver the new Basel IV rules by the end of this year. The rules aim to avoid repeats of the financial crisis of 2008-09, when taxpayers had to bail out under-capitalized lenders.
The plan, however, has drawn criticism in Europe. The European Union’s financial services commissioner said several weeks ago that the reform risks hurting European banks and needs to be changed.
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