A positive outcome of the Seoul summit indeed is the leaders' commitment to ensuring a level playing field. "This aspect is crucial for the banking industry, if a healthy competition is to be maintained" declared Guido Ravoet, Secretary General of the EBF "we are therefore glad that a commitment has been reiterated forcefully, but the proof of the pudding is in the eating: it remains to be seen how these measures will be implemented. That is why we are looking forward to the role played by the peer review and international assessment processes put in place."
European banks also agree with the decision to establish a macro prudential framework; they further commend the proposed reinforcement of the regulation and oversight of shadow banking and the decision to better supervise systemically important financial institutions (SIFIs), but without additional capital surcharges.
“G20 leaders have endorsed the Basel Committee proposals, as well as the Financial Stability Board (FSB) framework on SIFIs," commented Ravoet, "but they do not seem to have considered the overall impact assessment we have been calling for, which we consider as a pre-requirement to ensure the health of our economy.“
The EBF will now continue to follow closely further developments arising from the Seoul Summit and implementation of the various measures adopted by regulatory bodies, to ensure that the competitiveness of the European banking sector is maintained at global level.
© EBF
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