Regulator urges UK banks to look hard at EU capital proposals

LONDON – UK banks should look hard at a draft text of European Union (EU) capital rules that the European Commission plans to issue around the end of October, the UK’s senior financial regulator said today.

Bankers should comment on the draft sooner rather than later, Financial Services Authority (FSA) chairman Howard Davies said. The FSA is the UK’s chief financial market watchdog.

The commission plans to publish a paper on progress with its third capital adequacy directive (Cad 3) about a month after the Basel Committee on Banking Supervision issues key documents relating to the complex Basel II capital accord.

Cad 3 is closely modelled on the Basel II proposals and the draft text will be

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