Two smokers hanging out at the entrance to the European Investment Bank (EIB) in Luxembourg politely said “bonjour” as I entered its concrete headquarters. The European Union’s bank, which is the largest international lender in the world, as well as the largest supranational bond issuer, is like that. Politely resolute and just a little bit subversive. Rather like President Philippe Maystadt.
Take his views on Basel II. Multilateral institutions are not obliged to apply the new banking regulations. “We decided we will apply the rules. This might induce more volatility in our results and make forward commitments more difficult. [But] we are quite determined to apply best practice,’’ he says, speaking in his nondescript office.
