WASHINGTON, Oct 12 (Reuters) - A deal on a new banking rules called Basel III is close but not yet done, French central bank chief Francois Villeroy de Galhau said on Thursday after reports that France was holding out on agreeing to a compromise proposal on a vital component.
"I strongly wish that we can finalize Basel III soon... but we are not yet there," Villeroy said in Washington.
"We need a fair agreement that must apply to all jurisdictions in all of its components.... and this agreement must be consistent," Villeroy said.
He added that the deal must be based on "seriously checked" internal models. These are models that large banks use to calculate how much risks they are taking on and have been a point of contention in Basel III negotiations.
Speaking alongside Villeroy, Basel committee chair Stefan Ingves said that final hurdle is agreeing a number for the so-called "output floor," which would limit how much a bank's capital requirements based on its own risk model can deviate from how they would be calculated using standard rules.
European officials wanted a floor set at 70 percent, while the United States has called for a tougher level of 75 percent. A compromise deal at 72.5 percent was suggested in recent negotiations. (Reporting by Balazs Koranyi; Editing by Francesco Canepa in Frankfurt)