The Danish Presidency today received support from all EU countries on its compromise proposal concerning new EU rules on capital requirements for banks. At the extraordinary Council meeting on 2-3 May, EU finance and economy ministers (ECOFIN) held negotiations on the Presidency’s proposal and a required qualified majority of countries supported the proposal, but with further work the Presidency today secured the support of all EU countries. The strengthening of banks' capital requirements is an important part of the overall prevention of future crises, and is among the highest priorities for the Danish Presidency. With today's agreement in the Council, the Presidency can begin negotiations with the European Parliament in order to reach a final agreement.
The rules implies extensive regulation of the financial sector, including more and better capital and liquidity in banks, the possibility to impose different, temporary additional requirements for banks to ensure financial stability and elements of good corporate governance and a tightening of the requirements for the member states’ sanctions towards non-complying institutions.
Minister for Economic Affairs and the Interior Margrethe Vestager says: "I am very pleased that we reached an agreement on new EU rules on capital requirements for banks today and that all EU countries supported the Danish Presidency’s compromise proposal. We are currently cleaning up after the financial crisis and working to prevent future crises. Tougher requirements on banks and their capital is among the most important steps towards ensuring healthier banks and making the financial sector in the EU more resilient. A healthy banking sector is important for growth and employment. We can now start negotiations with the European Parliament in order to get a final agreement."
Press release
© ECFIN
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