PARIS (Dow Jones)--The French business lobby group Paris Europlace board member Michel Pebereau, Wednesday called for bank regulation at a European level to absorb any future shocks to the market system.

He also urged the banking sector "to return to the basics in terms of risk management and liquidity."

Pebereau, who is chairman of BNP Paribas (BNPQY), France's largest bank by market value, said "we need first to come to basics at the level of the banking industry in terms of good risks and liquidity."

He said the subprime problems in the U.S., which spurred the global crisis, were in part due to a regulation under which certain operators, most notably mortgage brokers, escaped proper supervision.

Even though Europe equally felt the brunt of the crisis whose origins lay in the U.S., Europe will have to create a more harmonized, regulatory framework to avoid crises from happening.

This is "an issue to avoid in Europe," he said.

"We now have to go to the basics as professionals in the field of the banking industry," Pebereau said.

He also said "we absolutely need a solution at the European level" and expressed the hope that a better regulatory framework could be achieved during the French E.U. presidency.

-By Nicolas Parasie, Dow Jones Newswires; +33 1 40 17 1770; nicolas.parasie@dowjones.com

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(END) Dow Jones Newswires

July 02, 2008 06:44 ET (10:44 GMT)