By Valentina Za MILAN, Jan 15 (Reuters) - Defending the competitiveness of European banks requires pacing the adoption of global banking rules known as Basel 3 in line with other countries, a top
ECB's De Guindos Advocates Balanced Basel 3 Implementation Strategy
Balancing Basel 3 Adoption
By Valentina Za
Impact on European Competitiveness
MILAN, Jan 15 (Reuters) - Defending the competitiveness of European banks requires pacing the adoption of global banking rules known as Basel 3 in line with other countries, a top European Central Bank policymaker told lawmakers on Thursday.
Regulatory Framework and Challenges
Addressing the European Parliament in Brussels, ECB Vice President Luis de Guindos said delays in the United States on implementing Basel 3 had to be taken into account.
Banking Mergers and National Policies
"Even if U.S. authorities say they will implement Basel 3, we have not seen that so far, so we need to have a balanced approach if full implementation is going to give rise to a competitive disadvantage," De Guindos said.
Views on Bank Taxes
De Guindos, who chairs an ECB task force dedicated to simplifying EU banking rules, noted the EU has delayed the full adoption of banks' trading book capital rules to 2027.
The United States, which has opted for a phased rollout between July 2025 and 2028, as of August was still reviewing the final rule according to consultancy PwC.
"We have been in favour of the faithful and swift implementation of Basel 3, but at the same time banking is a global business," he said.
He defended the ECB's regulatory and supervisory framework, saying it had supported the valuations of European banks since COVID despite industry complaints. He dismissed the idea that capital requirements impair lending and reiterated support for cross-border consolidation.
On Italy's use of special powers to influence banking mergers, De Guindos said Italy was not the only country to take such an approach and the European Commission was addressing such hurdles.
Italy and Spain last year blocked domestic banking takeovers, while Germany opposes UniCredit's ambitions over Commerzbank.
"It's not only the case of Italy … there are very concrete examples where the authorities have put forward difficulties," De Guindos said.
Asked about bank taxes, De Guindos said the ECB's view was unchanged: levies should not impair lending or endanger financial stability.
(Editing by Elaine Hardcastle)
