The chairman of European Union (EU) finance ministers has said that an agreement on new global banking rules should be delayed until the new US administration under president Donal Trump has clarified its attitude towards financial regulation.
“It is not that we want to delay, but things are changing rapidly,” said Maltese finance minister Edward Scicluna announced, before the latest monthly meeting of EU finance ministers in Brussels to discuss the state of the Basel negotiations.
Scicluna acted as spokeperson as Malta holds the rotating presidency of the EU until July. He added that it would be wrong to take a decision when the outlook is unclear and the uncertainty was largely due to uncertainty over the Trump administration’s intentions on financial regulation. Global regulators should reach an agreement only “once the dust settles”, to avoid being caught up with a wrong deal.
Long-standing disagreements between the EU and US over how to reform rules on banks’ capital requirements and loss-absorbing buffers have halted progress by the Basel Committee on Banking Supervision (BCBS) of global financial regulators, which oversees US, European and Japanese banks.
The original deadline to reach a deal before the end of 2016 was missed and a meeting scheduled for four weeks ago was postponed. No revised target date has been proposed.
Reforms proposed by the Committee have been opposed by Europe and Japan, which claim that the review goes too far and increases disproportionately the capital banks must hold against risk. This would increase the costs for banks in both regions and hand an advantage to their US rivals.
Leaked documents from the UK Home Office proposing that low-skilled EU migrants would be restricted in the UK’s post-Brexit immigration scheme may be more likely to increase automation and off-shoring of labour, rather than increase British wages, industry experts have warned.
The European Central Bank's (ECB) hotly anticipated meeting on Thursday afternoon made the euro skyrocket, as president Mario Draghi announced interest rates would remain at 0% and its quantitative easing programme will stay until at least the end of 2017.
The “sad truth” of banking is that many jobs will be automated in the future, Deutsche Bank's chief executive said yesterday. Despite this, a recent survey found that 98% of European workers are optimistic about the changes automation will bring to their workplace.
The dollar failed to recover against other major currencies on Monday following Friday’s disappointing US employment data announcement. This was coupled with ... read more