Europe and the United States are likely to agree on regulations governing the amount of capital banks have to hold by the end of the year, Stefan Ingves, chair of the Basel Committee on Banking Regulations, told Handelsblatt.
Mr. Ingves, who is also head of the Swedish central bank, leans towards stricter regulations for banks. But he also believes in compromise and told Handelsblatt that he believed an agreement was possible, and that it is his job to make that happen.
His comments came ahead of the meetings on Monday and Tuesday in Santiago, Chile where committee members, central bank chiefs and regulators from 27 countries will address questions such as how to assess risk.
The question is divisive; in Europe there is significant resistance to introducing far stricter regulations and representatives from Germany who sit on the committee threatened they wouldn’t necessarily agree to all compromises.
Further, in the run-up to the meeting, there has been concern about whether the committee’s members from the United States would have sufficient backing to agree to any new rules. However, Mr. Ingves said it was early days, too soon to say whether the U.S. election will affect the committee’s work and explained why he is optimistic about its prospects.