By Todd Buell
A member of the Deutsche Bundesbank's Executive Board has called on the U.S. to implement new banking rules known as Basel III.
Aaccording to a speech text to be delivered in Frankfurt, Andreas Dombret said that it is essential that the new rules, which seek to make banks more resistant to future crises, be implemented worldwide.
"There is no alternative to implementing Basel III on a global scale," said Mr. Dombret. "I call on my colleagues in the U.S. not to unexpectedly question the whole framework in the 11th hour--after taking part in its negotiation during the entire process."
His remarks are the latest in a spat between Germany and the U.S. over the new banking rules. In an interview earlier this week with German newspaper Handelsblatt, the vice chairman of the U.S. Federal Deposit Insurance Corporation, Thomas Hoenig, said Basel III rules are ineffective, misdirected and too complex.
The U.S. has decided to delay implementing the Basel III rules, which establish the cushion that banks are required to hold against losses. The rules are due to go into effect in Europe next year.
Speaking on the sidelines of a conference earlier this week, Elke Koenig, the head of German financial watchdog BaFin, called Mr. Hoenig's remarks "a cause for concern," though she added that such comments may not represent "mainstream" opinion.
In his speech, Mr. Dombret said that "nobody would understand why the largest financial market in the world suddenly were to go its own way on capital rules."
Madeleine Nissen contributed to this article
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