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ECB opposes EU plan to ease banking rules

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FRANKFURT, March 25 (Reuters) – European Union parliamentarians should not grant banks exceptions to new global rules they have discussed to avoid a new financial crisis, highlighting risks related to housing and derivatives, the central bank said on Friday. European.

The ECB, which is the main banking watchdog in the EU, welcomed the European Commission’s proposal to apply the Basel III rules, but objected to some “deviations” from the letter of the globally agreed standards. .

In concrete terms, he said banks should not be given leeway to account for their exposures to residential real estate, derivatives and unrated companies when calculating their minimum capital requirement, known as the “production floor.”

“These deviations are not justified,” the ECB said in the slides accompanying the legal opinion. “They should remain temporary, if they remain at all.”

The ECB’s opinions are not binding, but they often influence the legislative process, led by the Commission, the EU Parliament and the Member States.

The Frankfurt-based central bank called for the output floor to apply at the EU level, not the national level, and objected to allowing banks to disregard historical losses when Calculate your capital needs.

It also urged the Commission to stick to a calendar for applying the rules related to market risk by 2025.

The ECB’s opinions are transmitted to the EU governments, which in turn perfect the proposals, which finally go into a “trilogue” with the Commission, Parliament and the EU states before their conclusion.

This can sometimes take years. The Basel III Standards were finalized in December 2017.

(Reporting by Francesco Cánepa; edited in Spanish by Benjamín Mejías Valencia)

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