The European Commission is expected to propose the rules — part of the international Basel III banking reforms — in September or October. But capitals led by Paris, Berlin, Copenhagen and Luxembourg are trying to persuade the commission to moderate the minimum level imposed, according to those involved in the discussions. The way in which the international standards have been drawn up threatens to penalise EU banks, they argue.
Jörg Kukies, deputy finance minister of Germany, told the Financial Times that the Franco-German proposal was “a pragmatic way of ensuring a truthful and compliant Basel implementation on the one hand and respecting the political mandate of [the EU’s economic and financial affairs council] and G20 for no significant increase in capital requirements as well”.
The full article is available at https://www.ft.com/content/0122b5c4-1cd2-4c17-aaee-590f10205543