HANDELSBLATT EXCLUSIVE

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Top German Bank Regulator Says Basel Negotiations May Fail

Germany, Frankfurt: Raimund Roeseler, Executive Director Banking Supervision of the BaFin
Raimund Röseler fears a race to the bottom. Picture Source: Picture Alliance

Raimund Röseler, the chief bank regulator at Germany’s Federal Financial Supervisory Authority, or Bafin, has said international agreement on banks’ capital requirements is urgently needed to avoid a “regulatory race to the bottom” with dangerous consequences for the global financial system.

Speaking in an exclusive interview with Handelsblatt, Mr. Röseler said the election of U.S. President Donald Trump meant there were now people on the American side who would prefer to abolish many tougher regulations. But it remained unclear how this would impact the Basel negotiations, he added.

Talks between the world’s major regulators on revamping global capital rules have stalled in recent months. Mr. Röseler said there were still significant differences on regulations that would take banks’ different risk profiles into account.

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