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Europe must not Water Down Bank Regulation, Top Supervisor

FRANKFURT, Nov 6 (Reuters) - Europe should go ahead and implement new regulation for banks known as Basel III, which aims to make lenders more resilient to possible economic shocks, Claudia Buch, the European Central Bank's top supervisor, said on Wednesday.

"The Basel framework needs to remain the cornerstone of internationally agreed rules," Buch said in a speech. "Watering down the Basel rules would be self-defeating – it would weaken the guardrails, in particular for globally active banks, and increase regulatory uncertainty."

Donald Trump's victory in the U.S. Presidential election overnight raised questions about the global implementation of these rules from next year as he largely campaigned on promises of deregulation.

Reporting by Balazs Koranyi Editing by Mark Potter

Source: Reuters


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