Interview , News of 12 July 2017

Capital requirements for new government bond purchases only could be a reasonable strategy: Seven questions for Dorothea Schäfer

Daniel Petzold (Copyright)  Euro Euros Cent
Copyright: Daniel Petzold

Mrs. Schäfer, the Basel Committee on Banking Supervision has been negotiating the Basel III reform package since 2013. Banks have long been able to finance EU government bonds with 100% third-party debt capital. Is there agreement with regard to increasing the capital requirement for them?

The committee members agree that capital requirements for EU government bonds must be implemented in the future. But the details have not yet been made public. [...]

The interview with Dorothea Schäfer is published in the DIW Economic Bulletin 28/29 (2017) | PDF, 3.82 MB