washington (reuters) – an agreement on the reform of the regulatory framework of the banking sector is close to, but not yet signed, said thursday the galhau know of, the governor of the bank of france, after reports of resistance in france, a compromise proposal.
“i very much hope that we will be able to complete in basel iii (…) but we are not there yet,” said the central bank in washington, dc.
“we need a fair agreement that applies to all courts in all its aspects (…) and this agreement must be consistent,” he said.
the agreement, he said, must be based on internal models “seriously tested. the internal models used by banks to calculate their risk taking is one of the main sticking points in negotiations of basel iii.
speaking with the governor of the bdf, stefan ingves, chairman of the basel committee, claimed that the last remaining obstacle to be overcome is the development of the floor (floor) and internal model approaches compared to standard approaches, i.e., how the own funds requirements based on their own models. banks’ risk will deviate from the standard calculation.
u.s. regulators are in favour of a minimum level of capital required for 75% of the standard, when the europeans call for 70%, highlighting the quality of their internal models. a compromise to 72.5 per cent has been suggested in last week’s negotiations, according to sources.
the basel committee on banking supervision, which is the financial authorities from more than 30 countries, has set itself the goal of preventing new crises in 2008 after the implementation of more stringent prudential standards, the reform of the regulatory framework of basel iii will not apply until the next decade.
(balazs koranyi, veronica poker, for service in french)
copyright & copy;, thomson reuters
Translated by forexguides.info Team