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* Adair Turner one of architects of new banking rules
* UBS, Barclays CEOs don't see big rollback in regulation
* ICAP CEO says Dodd-Frank repeal would be good for markets
By Huw Jones
LONDON, Nov 16 (Reuters) - The United States must not scrapbank capital requirements introduced at the height of thefinancial crisis aimed at avoiding more taxpayer bailouts oflenders, an architect of the rules said on Wednesday.
U.S. President-elect Donald Trump has said the "sprawlingand complex" Dodd Frank reform of Wall Street banks passed in2010 has failed to live up to promises to boost growth.
His comments on rolling back regulation have triggeredunease among global regulators, and have sparked calls from someEuropean Union lawmakers for ongoing talks on new global bankcapital rules to be suspended.
"I think it would be very unfortunate if there is anysignificant rollback of the regulation which was introduced overthe last five years," Adair Turner, who led Britain's FinancialServices Authority during the financial crisis and was one ofthe architects of the new banking rules, said on Wednesday.
"The international community will be drawing a distinctionbetween, yes, there are specific things in the Dodd Frank arenathat are specific to the U.S. where they may want to revisitthat. What would be very concerning is any rollback of capitaland liquidity agreed at the international level," he told a newsconference to launch a report on financial markets.
Turner said there was a need to wait and see whether Trumpimplements all his election pledges, and industry officialsdoubt all of Dodd Frank will be jettisoned.
"There will be adjustment around the edges. I don't expect afull rollback on regulation but I expect much less regulation tocome," Axel Weber, chairman of Swiss bank UBS, toldCNBC on Wednesday.
Meanwhile, Barclays bank Chief Executive Jes Staleytold a separate conference: "I don't think there will be a hugerollback on the regulatory framework."
BASEL IV
Trump's stated policy, however, may cloud efforts by globalbanking regulators at the Basel Committee to complete capitalrules that are already under attack from Europe for being tootough.
The committee meets in Chile on Nov. 28-29, and bankersexpect its supervisory body, chaired by European Central BankPresident Mario Draghi, may end up having to broker a deal inearly 2017.
A string of European policymakers and regulators have saidthe final Basel reforms should not be implemented if they leadto a big increase in capital requirements.
This prompted Thomas Hoenig, a top U.S. banking regulator,to say Basel should not rule out a significant increase inindustry capital levels.
The reforms, dubbed Basel IV by banks, seek to curb theirability to use their own models to analyse risks on their booksto determine capital requirements.
"To replace this risk analysis by a very simplistic standard- that would, in a way, go back to the old non-specific system.So-called Basel IV could be a dangerous move." formerInternational Monetary Fund managing director Jacques deLarosiere told the news conference attended by Turner.
Some EU lawmakers, whose backing is needed to implementBasel's reforms, want regulators to pause until the new U.S.administration's policy is clearer.
"I am in favour of a moratorium on Basel's work," MichaelTheurer, a German member of the European Parliament said onTuesday. "It would be wrong to implement something in Europethat would not be implemented in the United States."
The EU will itself publish proposals next week to ease somecapital requirements on banks in a bid to boost jobs and growth,the same objectives cited by Trump, while insisting thatinternational standards will still be respected.
Michael Spencer, chief executive of ICAP, theworld's biggest broker, said on Wednesday a repeal or review ofDodd Frank would be good for markets.
"I think there are many reasons in the financial sector, andfrom our businesses point of view, that we can say that he(Trump) brings a lot of positives to our industry," he said. (Additional reporting by Anjuli Davies and Noor Hussain;Editing by Mark Potter)
