|Author (Person)||Masters, Brooke, Tait, Nikki|
|Series Title||Financial Times|
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.
|Subject Categories||Business and Industry|
|Countries / Regions||Europe|