Global deal on bank capital rules likely: EU official

LONDON (Reuters) – A deal on global bank capital rules is likely next week, a senior European Commission official said on Thursday, but the compromise that will emerge will be tested for its impact on the EU’s economy.

The oversight body of the Basel Committee of banking supervisors meets on Dec. 7 and they are expected to sign off on final elements of their Basel III package of post financial crisis bank capital reforms.

“We do now look as if we are heading to an agreement,” John Berrigan, deputy director general for the commission’s financial services unit, told a Financial Times conference.

“We will want to do an impact assessment to see how it impacts the EU economy,” Berrigan added.

The Basel rules are not binding on members such as the EU, which can still tweak them during implementation.

Berrigan said there will be checks to see there is no “excessive” impact on the ability of banks in the bloc to keep lending to the economy.

Michael Cole-Fontayn, EMEA Chairman of BNY Mellon bank, said “there will be a very long transition period” for the rules.

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