Michel Barnier, the EU's internal-market commissioner, plans to propose curbs on banks' use of credit ratings. The proposal is part of efforts to align banks' capital requirements in Europe with Basel III rules. "To limit over-reliance, we will be strengthening the requirement for banks to carry out their own analysis of risk and not rely on external ratings in an automatic and mechanical way," Barnier said. "We will also make other concrete proposals before the end of the year to limit over-reliance to deal with insurance, asset-management and investment-fund sectors."

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