An editorial in the FT criticises European Commission plans to implement Basel III capital rules for the banking sector through a Regulation rather than a Directive, arguing: “The EU’s main argument is that member states cannot be allowed to apply their own capital requirements because if some set higher standards than others, banking would shift to those that applied only the minimum, creating dangerous concentrations of risk. However this is not an argument for harmonisation. Rather, it is one for an adequate minimum standard.”
Thursday, 2 June 2011
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