The Council confirmed that the provision of capital to the banking sector is not intended to create new, higher statutory capital requirements for the banking sector.
The Council confirmed that the provision of capital to the banking sector is not intended to create new, higher statutory capital requirements for the banking sector. The capital requirements of banks should continue to be assessed on a case-by-case basis, in line with existing EU regulation, based on their individual risk-profile and rigorous stress-testing. It should be recognised that capital provides a buffer both to withstand the challenging economic conditions and to maintain lending to creditworthy borrowers.
The Council supports calls to modify the international regulation of capital and accounting rules in future to ensure that excessive pro-cyclical consequences are mitigated, ECOFIN says.
Member States continue to remain committed to taking all necessary steps, including on capital, liquidity and lending, working together wherever possible. The Council will continue to monitor the implementation of the rescue packages over the coming months and invites the Commission to make recommendations on how to enhance their effectiveness."
Council conclusions on Bank Capital
For more information on the ECOFIN meeting see here
© Council of the European Union
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