Euronews’ Maithreyi Seetharaman asked Valdis Dombrovskis, the European Commission Vice President for the Euro & Social Dialogue, Financial Stability, Financial Services & Capital Markets Union, if the new banking proposals put forward impacts the impending Basel III negotiations in January 2017. He responded by saying Europe’s position was that any international regulation should not lead to overall substantial increases in capital requirements for European Banks.
Maithreyi Seetharaman: Considering the incoming Presidency in the U.S, and how different U.S. and European economies are in terms of dependence on banks – Do you think these proposals are going to allow European banks to be in a stronger position and under what rulebook?
Valdis Dombrovskis: Well there are a number of international agreements which are already made in Basel committee in Financial Stability Board – So what we are doing so far – we are primarily implementing those agreements which have already been made internationally. And of course, we expect also, other global players including U.S. to follow through on those agreements and also on the commitments they have also made to introduce those requirements for their banks. Well we know that those negotiations with regards to completion of Basel III (3) are still ongoing. And we will come back to this issue in January. And The position Europe is taking – that completion of Basel 3 should not lead to the overall substantial increases of the capital requirements. And this is something that has been agreed by the way by the Basel committee itself