EU should revisit bank and insurer capital rules

By Jerry  Published On April 26, 2024
PARIS, April 25 (Reuters) – French President Emmanuel Macron called on Thursday for a revision of how Europe applies minimum capital rules to banks and insurers so that they are not too risk-averse and Europe is put at an economic disadvantage.
The Basel Committee of banking regulators from around the world is facing pushback from banks in the United States in particular on the final leg of Basel III post-financial crisis bank capital reforms to prevent bailouts of struggling lenders by taxpayers.
Meanwhile, EU rules known as Solvency II for insurers have long required them to hold billions of euros in extra capital in excess of minimum reserves, although an agreement was reached in December to ease them.
“We need to revise how Basel and Solvency are applied. We cannot be the only economic zone in the world that applies them,” Macron said in a speech on the European Union at Paris’ Sorbonne University.
Source: REUTER

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