February 15, 2017 / 9:54 PM / 2 years ago

ECB's Weidmann says rolling back financial market regulation would be a mistake

Jens Weidmann, President of German Bundesbank attends the Generation Euro Students' Award ceremony at the European Central Bank (ECB) headquarters in Frankfurt June 20, 2012. REUTERS/Alex Domanski/File Photo

BERLIN (Reuters) - Bad loans triggered the global financial crisis a decade ago and it would be a mistake to roll back international regulation which has forced banks to build bigger buffers, ECB policymaker Jens Weidmann said in comments published on Wednesday.

“An important lesson from (the financial crisis) was that the banks are now subject to stricter supervision and that they must have bigger capital buffers,” Weidmann told Bild newspaper.

“We must absolutely avoid a competition of deregulation,” Weidmann said.

U.S. President Donald Trump has ordered reviews of major banking rules that were put in place after the financial crisis. German Finance Minister Wolfgang Schaeuble said on Tuesday he would try to dissuade his U.S. counterpart Steven Mnuchin from deregulating the financial markets.

Reporting by Michael Nienaber

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