BRUSSELS, June 20 (Reuters) - The vice president of the European Commission warned the Trump administration on Tuesday against deviating from international banking rules in its review of U.S. financial regulations.
The U.S. Treasury last week unveiled plans to upend the country's financial regulatory framework in a 150-page report that suggested more than 100 changes, some of which could affect rules previously agreed with international partners.
"The signal we are sending to the U.S. authorities is that we expect continuous adherence to globally agreed standards and rules," Valdis Dombrovskis told lawmakers in the European Parliament.
The U.S. Treasury has called for a delay in implementing a globally agreed rule on bank liquidity which requires banks to cover long-term funding needs from January, 2018.
Washington also wants to delay a fundamental review of banks' trading books, which was agreed globally through the Basel Committee of international regulators.
Answering EU lawmakers' questions, Dombrovskis referred directly to the two recommended reforms as examples of internationally-agreed rules that needed to be respected.
The trading book review represented a major overhaul of how banks set aside capital to cover risks from stocks, bonds and other instruments kept in their trading businesses.
Dombrovskis, who has sided with EU banks in tweaking other banking reforms on capital requirements agreed by global regulators, stressed that the U.S. plans at the moment are mere recommendations which need to be translated into concrete legislative proposals.
"We must see what practical steps will be taken," Dombrovskis said.
He argued that a reform of the U.S. regulatory framework did not pose a problem as long as it did not encourage deregulation. (Reporting by Francesco Guarascio, editing by Ed Osmond)