Germany and France call for banking changes

23 January 2012

Current global bank capital regulations are threatening to stifle the worldwide economic recovery in the wake of the recession.

That is according to senior officials from Germany and France, who will today (23 January) call for reforms to be implemented in this area on the basis that the present regulations are too restrictive, the Financial Times reports.

Wolfgang Schauble and Francois Baroin, finance ministers for the two countries, believe banks that own insurance companies should be offered special dispensation on the guidelines listed under the Basel III ruling because they are threatening to have a "negative effect" on growth.

A joint paper produced by the nations has urged for the deadline to disclose capital ratios for such organisations to be delayed by three years.

This comes after Bank of England official Andrew Haldane recently insisted that banks operating in the UK should be subjected to new rules regarding their accounting practices.

By Gary Cooper

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