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Felix Hufeld, president of Germany's top financial regulator
Bafin, made the call at an industry conference days after the
election of Donald Trump, who has said he would scrap some
financial rules to help U.S. businesses if he became president.
The financial and banking lobby in the U.S. and Europe has also
been pushing for less post-crisis regulation, which the industry
says is hampering its ability to lend to companies and stimulate
growth in economies still suffering after the effects.
"Barely 10 years after the start of the financial crisis I once
more hear the bugle calls of deregulation," Hufeld said, without
explicitly referring to Trump in his speech.
"And I have the impression that these sounds are becoming
louder," Hufeld added. "That is not without risk."
President-elect Trump said throughout his campaign he would
oppose financial regulations and in May said he would repeal the
2010 Dodd-Frank Wall Street reform law, which was passed in the
wake of the financial crisis and empowered federal regulatory
agencies to restrict banks' ability to make risky investments.
Hufeld also warned that a loosening or scrapping of existing
laws would lead to a new financial crisis.
"The industry, just as politics and regulators, are in need of
predictability and continuity - not regulatory volatility," the
Bafin head said.
(Reporting by Andreas Kroener; Writing by Tina Bellon; Editing
by Alexander Smith)
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