PARIS, April 20 Any bid to undo regulation
developed in recent years in the financial sector would increase
the risk of another crisis, the Bank of France governor said on
Thursday, adding that the U.S. government's attitude on this
would be key.
New U.S. President Donald Trump has ordered reviews of major
banking rules rolled out after the global financial crisis in
2008, in a signal that looser regulation could be on the way.
The Bank of France's Francois Villeroy de Galhau, a European
Central Bank policymaker, said in a financial stability report
that regulations were an asset that should be preserved as they
had helped make the system more secure.
"Any temptation to go back on this or to massively
deregulate would increase the risk of another financial crisis,"
Villeroy said, adding that the challenge was now to reinforce
these rules. "The attitude of the new U.S. administration will,
of course, be key: now more than ever, close international
co-ordination and strong political determination are vital."
(Reporting by Yann le Guernigou; Writing by Sarah White;
Editing by Sudip Kar-Gupta)