The ECB rejected US accusations of currency manipulation yesterday and warned that deregulating the banking industry, now being discussed in Washington, could sow the seeds of the next financial crisis.

Bundesbank board member Andreas Dombret said the European Central Bank has done its job to buy time for governments to fix weaknesses in the euro’s foundations.

Frankfurt: Bundesbank board member Andreas Dombret expects capital buffers of two to three percentage points for banks deemed “too big to fail” because their collapse could endanger the wider financial system and hurt economic growth.