EU banks could pull out of signing new global norms.
Global Banking News-September 27, 2016--EU banks could pull out of signing new global norms
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Global Banking News - 27 September 2016
European banks could opt not to sign global rules that are aimed at preventing another financial crisis because they feel that the proposed rules are partial.
Bankers in Europe are not happy with the proposed Basel IV rules that they feel would put them at a disadvantage, even as the economic slowdown has seen them losing market share to US banks. The banks said that the proposed Basel IV rules unfairly penalise Europe's banks.
Meanwhile US banks are of the opinion that the proposals, which call for more capital reserves, are intended to make the banking system reliable and resistant to collapse. EU officials say the changes will make European banks and their large loan portfolios look more risky. US banks, which provide more bond financing and package mortgages for trading elsewhere, will not feel the pinch to the same extent as European banks, they opine.
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