UPDATE 1-Global banking reform must not cap capital buffers -Eurogroup head

(Adds Slovak minister’s quotes, background)

By Francesco Guarascio

LUXEMBOURG Oct 11 New global banking rules
should not include set limits to increases in capital adequacy
requirements and should focus on improving banks’ internal risk
assessment models, the head of the euro zone finance ministers’
grouping said on Tuesday.

The Basel Committee, banking supervisors from nearly 30
countries, is due to complete its reform, known as Basel III, by
the end of 2016. The new rules are meant to make the sector more
financially sound by reducing reliance on internal risk models.

“The outcome of the process should be that we have good
quality standards for internal models and in the individual
cases of some banks it may lead to higher capital requirements,”
Eurogroup President Jeroen Dijsselbloem told reporters before an
EU finance ministers’ meeting that will address the issue.

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