Olli Rehn, EU commissioner for economic and monetary affairs, is trying to allay concerns about higher capital and liquidity requirements for banks. "Some voices in industry seem to have apocalyptic views about the costs of higher equity capital, and they warn of increased lending cost and a reduction in credit supply to the economy," he said. Rehn said the transition period will ease the shift and that higher equity capital will actually reduce the cost of debt funding. He also reiterated that the "rules need to be enforced uniformly."
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