FRANKFURT Nov 30 New global banking rules meant
to avert another financial crisis must be fair for all regions,
the head of Germany's central bank said on Wednesday after
regulators failed to reach a deal on the new standards at a key
The Basel Committee of regulators aims to define how much
capital banks across the world must hold to cover risks. But its
proposals have been challenged by Europe and Japan, who say they
risk disturbing the flow of credit to the economy.
"A successful negotiation outcome must strengthen the
resilience of the banking sector but also be regionally balanced
and cannot hollow out the risk-oriented approach of the Basel
framework," Bundesbank President Jens Weidmann said.
Basel has set itself an end-of-year deadline, which means
the pressure is now on to iron out differences in time for
Basel's oversight body of central bank governors and heads of
supervision (GHOS) to endorse a package in January.
"We will therefore continue to work with impetus until the
beginning of January ... because regulatory uncertainty also
damages the functioning of the banking sector," Weidmann said.
(Reporting By Francesco Canepa; editing by Mark Heinrich)