The main topic at the ECOFIN meeting of economics and finance ministers on 15 May 2012 was the transposition into European law (CRD IV) of the Basel III requirements for banks and investment companies, in particular capital requirements. This issue had already been the subject of intense discussions at the special ECOFIN meeting on 2 May 2012. The overall approach has now been approved unanimously. As a result, trilogue negotiations with the European Parliament can commence.
The German government is most satisfied that an agreement has been reached, and hopes that the principled and transparent implementation of Basel III in Europe will thus proceed as agreed from 1 January 2013. This represents a major step towards tougher bank regulation on a uniform basis throughout Europe. Banks will be required to hold a considerably higher amount of better quality capital, and active steps are being taken to address the issue of shadow banking and the risks it poses. In future, banks will have improved liquidity reserves. Indebtedness within the banking system will be tested, and will be more proportionate to risk. These measures aim to prevent taxpayers having to bear the ultimate responsibility for risks taken by banks.
Press release
© Bundesfinanzministerium
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