Joachim Wuermeling, a German central bank director, warned that US and EU efforts to relax capital requirements for medium-sized banks could imperil global financial stability.
“I am concerned about tendencies in both the EU and the US to exclude from key regulations internationally active mid-sized banks,” he said in a recent speech.* “The last crisis erupted not only due to what large banks did, but also because of the activities at midsized banks".
Wuermeling, one of six members of the Deutsche Bank executive board, said smaller banks that aren’t internationally active should be subject to simpler rules than those called for by Basel III.
US, EU mid-sized bank relief could threaten financial stability, German central banker says
13 February 2019 10:02pm