An excessive relaxation of standards in the financial industry could trigger stress resembling the 2008 meltdown,
While the US wants to loosen regulation on banks to bolster economic growth, Europe has adopted a more prudent stance, involving simplifying — rather than cutting back — existing rules. Villeroy, who heads France’s central bank, said the region mustn’t be tempted to follow America’s lead.
“We still need regulation and this is our debate with our US partners,” he told the Berlin Global Dialogue conference on Friday. “It’s obvious. We favor together ...