Global Regulators Close to Final Deal on Basel III Sticking Point

Global banking regulators are close to reaching an agreement on capital rules for banks under the terms of Basel III, with Europe and the United States set to compromise on a major sticking point, sources said Tuesday, October 10th, as Reuters reported.

The Basel Committee on Banking Supervision met last week to try to finalize this final part of the regulatory package, however, faced some resistance as U.S. and European officials disagreed on the "output floor" requirement. With the 70 percent set by Europe and a 75 percent by the U.S., a deal at 72.5 percent now looks promising, the sources said.

However, as Reuters added, France has complicated the final negotiations by reportedly setting a hard line against the introduction of a floor. French Finance Minister Bruno Le Maire said after a meeting of EU finance ministers in Luxembourg that "we do not want any increase in capital requirements; this is the constant position of the French government."

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