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French banks among top winners in Basel revamp
July 30, 2010
French banks led a rally in European banking shares on Tuesday as the sector benefited from a scale-back of looming capital reforms and a longer timeframe to implement changes.
French banks surged over 10 percent to 2-1/2 month highs, leading a charge by other lenders including Barclays as the news on the Basel III capital reform was added to by better-than-expected profits from UBS and confidence returning after the completion of stress tests.
"It looks pretty positive, especially for Credit Agricole," said MF Global analyst Shailesh Raikundlia, citing changes that would exempt the French bank from having to completely deduct its cross-shareholdings with regional banks from Tier 1 capital.
Original Posting At: Reuters
French banks surged over 10 percent to 2-1/2 month highs, leading a charge by other lenders including Barclays as the news on the Basel III capital reform was added to by better-than-expected profits from UBS and confidence returning after the completion of stress tests.
"It looks pretty positive, especially for Credit Agricole," said MF Global analyst Shailesh Raikundlia, citing changes that would exempt the French bank from having to completely deduct its cross-shareholdings with regional banks from Tier 1 capital.
Original Posting At: Reuters
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