ECB's Villeroy sees cross-border bank mergers after regulations settle
- Tech, bank stocks drive Wall Street to new high
- Lower for longer, ECB scales back asset buys
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Oil rises above $50 despite doubts over OPEC output cut
- UPDATE: LPL Financial (LPLA) Said to Decide to Stay Independent After Reviewing Options - Bloomberg
The headquarters of the European Central Bank (ECB) are pictured in Frankfurt, Germany September 8, 2016. REUTERS/Ralph Orlowski
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
PARIS (Reuters) - Europe's banking sector will be ripe for consolidation once international bank regulations currently being thrashed out are finalised, ECB governing council member Francois Villeroy de Galhau in a newspaper interview published on Friday.
The Basel Committee, made up of regulators from nearly 30 countries, is in the final stages of drafting recommendations for how much capital banks have to hold to remain solvent.
However, European countries with big banks are concerned that the proposals as they stand might put their lenders at a disadvantage.
Villeroy said in an interview with Italian daily Corriere della Sera that Italy, France and Germany were pushing for rules that would not require significantly higher levels of capital.
"Once the (regulatory) framework is cleared up, it would be desirable to make progress on creating cross-border institutions in Europe," Villeroy, who is also governor of the Bank of France said.
"That would allow for savings to circulate better in Europe to the advantage of companies," he added.
Some bankers say regulatory uncertainty over how much capital banks will need to stump up in the future to cover their risks is a major obstacle to consolidation in Europe's fragmented banking sector.
(Reporting by Leigh Thomas)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Canada spy official doubts intelligence-sharing under Trump: report
- Poll: U.S. economic outlook unmoved so far after Trump win
- Northrop names former Air Force chief of staff to board
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!