Banks call for Europe to 'think international - not just local'

Greater harmonisation of banking regulations across Europe is vital, the British Bankers' Association (BBA) said today.

The BBA said the EU should 'think international and not just local' and also called for the Committee of European Banking Supervisors (CEBS) to be the focus for essential capital and liquidity issues in Europe.

In advance of a crunch European Commission hearing in Brussels tomorrow - where the recommendations of the High Level de Larosière Group will be discussed - the BBA underpinned its support for a European-wide forum for financial stability and steps to bring the regulators of Europe closer together with a call for London to host the successor body to the Committee of European Banking Supervisors (CEBS).

Chief Executive Angela Knight said: "London - the largest international banking centre in Europe - should host the successor body to the Committee of European Banking Supervisors (CEBS). London has the people, the experience and the skills to play a major role in European financial services and to bring about enhanced regulation and better protection for customers. The BBA believes London can play a leading role in bringing about closer cooperation among EU regulators.

"Financial services is a truly global business. The European Commission must remember that, for changes to work for the good of customers and the industry alike, European regulation must be set in an international context. It is vital regulators worldwide consider how difficulties in one country have knock on effects elsewhere."