(Corrects to read systemically in paragraph 4)
PARIS, April 12 French presidential candidate
Emmanuel Macron will push to give more power to European finance
ministers to set bank capital rules to boost credit flow in the
economy, his adviser, French European parliamentarian Sylvie
Goulard said on Wednesday.
Goulard shed light on comments by Macron made earlier in
March when he said he wanted bank and insurance capital rules
set by European Union finance ministers rather than by
Such a move could run up against EU decisions to make the
European Central Bank the main banking supervisor.
France, which is home to four out of 30 global systemically
important banks, has been a vigorous critic of new global bank
rules being hammered out by the Basel Committee of bank
supervisors and opposed a big hike in banks' capital
"In the EU we set in common the basic rules/levels and then
allow some flexibility to regulators/supervisors," Goulard said
in an email to Reuters.
"It is not that strange to have regular assessment to see if
the basic rules/levels are appropriate".
Macron, a former French economy minister who is frontrunner
in the polls to win the election, has said that regulators were
too focused on reducing risk, discouraging banks and insurers
from lending to the wider economy.
Giving more power to ministers would likely come at the
expense of regulatory bodies who, Goulard said could "come to a
point where they draft legislation" under the current setup.
With regulators requiring banks to hold higher levels of
capital to offset their risks in order to avoid a repeat of the
2007-2009 financial crisis, Europe has been struggling to strike
the right balance between strong capital requirements and the
need to keep credit flowing to broader economy.
"A yearly assessment by Ecofin (EU finance ministers) could
indeed make the ministers consider more the spill over of
When European Union lawmakers adopt a set of global
financial rules, such as those under discussion with the Basel
Committee, the text is then voted in each EU state, usually with
some changes to take into account particularities of banking
"We need to move away from discussions where abstract, short
term national interests prevail to a broader picture of the
common interest, ensuring we all benefit from the single
market," Goulard added.
(Reporting by Maya Nikolaeva Editing by Jeremy Gaunt; Editing
by Leigh Thomas)