EU to assess suitability of bank debt rules

Jonathan Hill, the EU’s financial services chief, said he will assess the suitability of global rules on bank indebtedness and funding before implementing them within the bloc.

Mr Hill said that he will decide if it is “appropriate” to introduce a binding leverage ratio and net stable funding ratio proposed by the Basel Committee on Banking Supervision as part of the overhaul of its international banking rulebook developed in response to the 2008 financial crisis.

“The EU is a committed supporter and indeed driver of reforms in the global arena,” Mr Hill said yesterday in Brussels. “But as with our capital and liquidity rules, the EU should not be afraid to implement the international standards in a way that makes sense for Europe and Europe’s diverse financial landscape.”