The Group of Governors and Heads of Supervision, the oversight body for global banking regulators, will meet Dec. 7 in a sign that a deal is in sight to complete reforms following the 2008 financial crisis, Reuters reported.
The group, or GHOS, chaired by European Central Bank President Mario Draghi, has been delaying a deal on the finalization of Basel III, including a proposal to impose limits on the extent to which banks can use internal models to calculate the riskiness of assets. France has been in the vanguard of European opposition to the measures, which some have deemed so sweeping as to constitute a "Basel IV."
However, on Nov. 24, Banque de France Governor Francois Villeroy de Galhau reiterated that it was his "strong wish and hope that we can reach a fair and reasonable agreement soon," the newswire noted. Andreas Dombret, a member of the Deutsche Bundesbank executive board, said Nov. 28 that although the current proposal for the so-called output floor was still too high, the German central bank was nonetheless prepared to accept it.
"People familiar with the negotiations" said a GHOS meeting would not have been scheduled were a deal not informally in place, particularly after a meeting slated for January 2017 was postponed after failures to reach a deal. A news conference is slated for the afternoon of Dec. 7 at the ECB in Frankfurt, where the GHOS meeting is to occur, the newswire added.
