EU Calls for Sweeping Changes to Basel Bank-Capital Proposal
- EU’s Dombrovskis says Basel should shelve capital floors
- Basel should re-work real-estate, corporate lending proposals
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Global banking regulators need to make sweeping changes to proposed new rules to protect European Union lenders against a spike in capital requirements, said Valdis Dombrovskis, the bloc’s financial-services chief.
The Basel Committee on Banking Supervision should rework planned restrictions on how banks use internal models to estimate risks from real-estate loans as well as corporate and infrastructure lending, Dombrovskis, a vice president of the European Commission, said in Brussels on Thursday. Banks have warned that the proposals on how they assess credit, operational and market risk would lead to hundreds of billions of dollars in additional capital charges.