LONDON (MNI) – European Central Bank Governing Council member Nout
Wellink, who chairs the Basel Committee on Banking Supervision, said the
Basel III accord announced Sunday meant banks would have to raise
capital over a number of years but that even weaker state-controlled
banks could sort out their problems.
He said he was “very positive” about the accord.
Wellink was asked by reporters whether Basel III would force banks
to raise new capital.
“Over a number of years, yes, but they can do it via the capital
markets or of course via [earnings] retentions,” he said.
Asked if the phasing in period for the new rules was long enough he
said, “I think it is long enough, yes.”
Asked whether weaker state controlled banks would be able to comply
with the new regulation, Wellink said, “they have to work out their
problems and they can solve these problems.”
Asked if Basel III would weaken banks’ positions, he said: “You
should ask them, but on balance we are very positive on the agreement.”
–Frankfurt Bureau; Tel: +49-69-720-142; email: jtreeck@marketnews.com
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