💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UPDATE 1-France to follow U.S. lead on Basel III - Lagarde

Published 09/08/2010, 03:45 PM
Updated 09/08/2010, 03:48 PM

* Lagarde says Basel III must apply equally to all

* Says France will not follow rules unless U.S. does so

* Details of Basel III rules expected on Sunday (Adds background, context, details)

PARIS, Sept 8 (Reuters) - France will not follow Basel III standards on capital requirements for banks unless the United States does so, the country's economy minister said in a newspaper interview on Wednesday.

Bankers and investors are eagerly awaiting details of the new standards, which will determine how much more of a capital cushion banks have to set aside as a safety net in the event of another financial crisis.

The Basel Committee of central bank and regulatory officials agreed a proposal for the new rules on Tuesday but plans to keep the details secret until Sunday. For details, see [ID:nLDE6861DD].

"It is necessary for these rules to apply to everyone," Christine Lagarde told La Tribune newspaper in an interview to be published on Thursday.

"We will not apply the new standards of Basel III if the Americans don't do it," she added.

The head of Germany's Bundesbank Axel Weber said earlier on Wednesday that Basel III talks could be wrapped up over the weekend, while insisting that no country should stand in the way of a deal being reached.

Lagarde said it was vital that the Basel Committee not impose "excessive rules" on capital requirements for banks because the French economy was largely dependent on the ability of its banks to lend freely.

The Basel Committee has said the reforms will have a minimal impact on economic growth over time and reap benefits in making the financial system more secure, although banks dispute this scenario, saying it could jeopardise recovery. (Reporting by Nick Vinocur; Editing by James Dalgleish)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.