PARIS (Reuters) - France’s central bank chief said on Thursday he supported a deal among financial regulators on bank capital rules because it was “fair, reasonable and final”.
European banks have long worried that a compromise proposal would hit them particularly hard and a deal was reached on Thursday after Paris relented when a long phase-in period was proposed.
“Any good agreement is a compromise. I am ready to support this one, as it is fair, reasonable, and final,” Bank of France Governor Francois Villeroy de Galhau said in remarks sent to Reuters after the agreement was reached.
He added that implementation of the new rules was gradual enough to avoid “excessive capital increases” and that the agreement would stabilize rules for the sector, which had long complained about the uncertainty in the absence of a deal.
Reporting by Leigh Thomas; editing by Michel rose