(Adds further comments from Coen, detail)
PARIS Feb 22 Members of the Basel Committee of
banking regulators are keen to reach an agreement on the final
piece of global capital requirements rules sooner rather than
later despite U.S. President Donald Trump's pledge to review the
banking rule book.
"All members are interested in bringing this to a
conclusion," Basel Committee Secretary General William Coen told
the French senate on Wednesday, although he declined to give a
Central banks and watchdogs around the world have spent the
past eight years drawing up regulation aimed at preventing a
repeat of the 2007-2009 financial crisis
However, Trump's order to review major banking rules that
were put in place after the crisis has raised doubts in Europe
and elsewhere that the U.S. would apply the final Basel
"There was an executive order signed by President Trump on
Feb. 3 that called for full engagement by the U.S. supervisory
authorities at the international table, which I read as quite an
encouraging sign," Coen said.
"It means that the U.S. is not stepping away from global
Nevertheless, approving any deal would be difficult until
Trump's administration appoints a new top financial supervisor
at the Federal Reserve, two people close to the talks told
Reuters this month.
The Basel Committee of banking regulators from nearly 30
countries meets on March 1-2.
Last November it was unable to reach a deal to over how to
inject more consistency into how banks assess risks from loans
to determine the size of their capital buffers.
Coen said that this output floor remains the sticking point.
European bankers say the 'output floor' could hit the
region's big banks the hardest, as they typically use their own
computer models to calculate capital buffers.
"Given its importance, we are taking the appropriate amount
of time to carefully consider a reasonable calibration that is
suitable as a global standard," Coen said.
Basel's proposed "floor" for capital is irrespective of what
a bank's own model says is the right amount. This means that
capital put aside against a loan cannot go below a certain
agreed amount that would be required if a bank had used the
"standard" approach set out by regulators for totting up risks.
(Reporting by Maya Nikolaeva and Julien Ponthus; editing by
Jason Neely and Louise Heavens)