Europe is set to delay its decision on how to implement Basel III bank liquidity rules beyond a June 30 deadline.
The European Commission is ready to side with Denmark in agreeing to more lenient rules in the treatment of covered bonds than recommended under Basel III.
Denmark’s government said its proposals from May to ease Basel III liquidity rules will probably prevail when the European Commission reveals its final decision on the matter this month.
European talks on how to treat covered bonds in banks’ liquidity buffers intensified this week as nations with the most at stake fought to ensure Basel III rules don’t hobble their markets.
Denmark’s government unveiled its second growth package in two years designed to drag Scandinavia’s weakest economy out of its crisis.
Denmark is in talks with some of Europe’s most powerful governments to ensure a plan to give its covered bonds second-class liquidity status is dismissed.
Danish Economy Minister Margrethe Vestager said the European Union should press ahead with plans for a joint mechanism to handle failing banks, rather than delay it as Germany would like.
Denmark is ready to do for its two- centuries-old mortgage system what European Central Bank President Mario Draghi has done for the euro: whatever it takes.
Danish Economy Minister Margrethe Vestager said European Union officials haven’t yet resolved how to include non-euro nations in financial supervision decision- making at the European Central Bank.
"The more concrete you can communicate about the benefits of structural reform, the better."
- Margrethe Vestager on Jul 08, 2014