Fight expected over EU bank capital rules / Brussels unveils tough bank capital rules

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Series Details 20.7.11
Publication Date 20/07/2011
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On 20 July 2011 the European Commission adopted a legislative package to strengthen the regulation of the banking sector. The proposal replaces the current Capital Requirements Directives (2006/48 and 2006/49) with a Directive and a Regulation. According to the Commission the package constituted another major step towards creating a sounder and safer financial system. The directive governs the access to deposit-taking activities while the regulation establishes the prudential requirements institutions need to respect.

However, the Financial Times in an editorial said it was a cause for concern that, as it prepares to overhaul regulation of its lenders, the European Commission appeared to be pulling back from the internationally agreed principles underlying the Basel III guidelines on banking capital.

Related Link(s)
European Commission: RAPID: Press Release: IP/11/915: Commission wants stronger and more responsible banks in Europe
ESO: Background information: EU states urge flexibility in Basel rules
EurActiv, 20.7.11: EU's banks face stringent capital rules
Bank for International Settlements (BIS): Monetary & financial stability: Basel Committee on Banking Supervision
European Commission: DG Internal Market and Services: Banking: Regulatory capital
European Commission: Memo/11/527: CRD IV – Frequently Asked Questions
European Commission: Speech/11/533: Michel BARNIER: CRD IV

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