LONDON, Feb 5 (Reuters) - There remains too much country specific discretion in the European Union’s single banking ‘rulebook’ and more focus needs to be given to potentially risky small banks, the head of the Bank For International Settlements said on Friday.
Jaime Caruana, the General Manager of the Swiss-based forum of major central banks, said it “would be good” if work on harmonising the EU’s banking rules continued and cautioned against what he described as “excessive” national discretions.
“I don’t think it would be good to have diverse definitions of non-performing loans,” he said at a European Banking Authority conference.
“I would also be in favour of more proportionality (in focus on risks),” he added. The focus “should be more on risks, not just on size” and also said the ties between banks and the sovereign debt they hold from their homes countries remained an issue.
Reporting by Marc Jones and Huw Jones