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European Banking Federation urges bank regulators to finalise new capital rules.

M2 EQUITYBITES-May 26, 2016-European Banking Federation urges bank regulators to finalise new capital rules

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Reuters has reported the European Banking Federation (EBF) has urged global regulators of Europe's banks to finalise new capital rules and has warned attempts to raise requirements would backfire on the economy, the organization said.

The EBF said that remaining rules being finalised by the global Basel Committee are the most onerous, pose a threat to financing in the European economy and may harm the competitive position of European banks in the global market.

Weak profitability of banks is already a top concern for European regulators.

Finance ministers from the Group of 20 economies agreed earlier this year there should be no significant increase in capital requirements on top of the Basel III capital rules introduced after the 2007-09 financial crisis.

Basel committee chairman Stefan Ingves told Reuters there would be no substantial capital increase in the banking system as a whole once the rules have been completed by year end.

Bank of England deputy governor Andrew Bailey said, "There is no Basel IV."

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Date:May 26, 2016
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