Germany: EU deal on bank rules unlikely Wednesday
Wednesday, 02 May 2012 | 16:30
Germany's finance minister says he and his EU counterparts are unlikely to agree on new capital buffers for banks at their meeting on Wednesday.
The European Union is in the process to writing an international agreement on bank capital buffers into European law. The so-called Basel III deal would force banks gradually to increase their highest-quality capital to 7 percent from 2 percent of risky assets. An additional 2.5 percent will have to be built up during good times.
However, the U.K. wants to be able to unilaterally require British banks to have bigger cushions, without first getting approval from the European Commission _ a demand opposed by France.
Germany's Wolfgang Schaeuble said that, despite the differences, he expects an agreement before the end of June.
Source: Associated Press
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