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News ID: 40093
Publish Date : 29 May 2017 - 20:01

‘EU Needs Simple Capital Rules for Euro Zone Banking Union’



PARIS (Reuters) - The European Union needs to set simple rules on bank capital to complete its project of bringing banks in the euro zone under a sole EUsupervisor, ECB Governing Board member Francois Villeroy de Galhau said on Monday.
Speaking in his role as head of the ACPR French financial sector regulator, Villeroy said the EU also needed better coordination between the European Central Bank's single supervisor, the European Commission and national regulators.
"Two and a half years after banking union, there has been clear progress, but its construction is not yet finished. We need to finish the resolution pillar with completed and more simple rules," Villeroy told journalists in Paris.
Villeroy also called for a rapid solution to bank troubles in Italy and Portugal, saying it was "not normal" that local problems weighed on overall European banking sector.
Following the launch of the single EU bank supervisor for the euro zone, regulators have focused on coming up with new global minimum bank capital rules in the Basel Committee of supervisors.
Banks have dubbed the remaining capital rules "Basel IV", meaning a step change in capital from Basel III, the existing set of rules that were rushed through after the 2007-2009 banking crisis and aimed to toughen up capital requirements.