2013 will be crucial in terms of improving banking regulations in Europe.
This was said by Michel Barnier, the member of European Commission responsible for Internal Markets and Services while speaking at the Fourth Future of Banking Summit in Paris on Tuesday. The summit was organized by a department of The Economist - The Economist Conferences group sponsored by Azerbaijani PashaBank.
"I believe that the crisis in the financial sector is over; we expect growth; this will lead to a rise in the real sector. However today, one must be careful not to risk their future to achieve quick success. The more we expect from reforms today, the more complicated their implementation will get. Financial stability is returning to the financial markets of Europe. We have worked hard over the past three years and have adopted 28 important pieces of legislation in the field of financial regulation," Barnier said.
As for the requirements of Basel-III, according to him, negotiations on the new proposals regarding capital requirements, known as CRD IV packages, are entering the final phase.
"I hope that the European Parliament and the EU Council of Ministers will be able to reach an agreement in the coming days. This package will be a fundamental document for strengthening the stability of the banking sector and will allow for future risks to be absorbed. Moreover, the application of these rules lays the foundation for a "single rulebook" in the European financial market, where up to 8,200 banks operate. This set of rules is our best weapon against the risk of fragmentation of the single market. This is a step towards a single financial market, a unified European community," Barnier said.
According to a member of the European Commission, reform of the structure of the banking sector, regulatory convergence between Europe and other countries, primarily the U.S., as well as long-term investment will become other key priorities for the European financial sector in 2013.
In conclusion, Barnier urged European countries to put more efforts to maintain and enhance the single market.
"The single market, which includes 500 million consumers, will become the first victim of protectionism in European countries. Today, the French, the Italians, the Germans, and British should be more European in order to avoid a situation where no European countries remain in the G8 in several years," Barnier said.