Minister puts banks on capital alert
Dutch Finance Minister Jeroen Dijsselbloem said capital requirements for some banks may have to rise under new global rules, striking a dissonant note amid a growing European consensus on softening the revamped framework's impact.
As it wraps up the post-crisis capital framework, the Basel Committee on Banking Supervision must ensure banks' internal models, used to measure asset risk, are of "sufficient quality so we don't continue to conceal risk", Dijsselbloem said yesterday. "So I can't rule out that the consequence could be that individual banks in Europe will face higher capital requirements."
But Bundesbank board member Andreas Dombret said the revised rules mustn't disproportionately affect European banks.
"Not significant means an increase of 0pc or near to 0pc; that has to be the starting point for all negotiations," he said.
As it completes the capital rules known as Basel III, the regulator is under instructions not to increase overall capital requirements significantly. That promise, first made in January, left open the possibility that individual countries or banks could face a marked increase.
German Finance Minister Wolfgang Schaeuble has said that the Basel Committee must not ensure the rules have no "particularly negative consequences for specific regions," such as Europe. (Bloomberg)