Commission requests implementation of latest bank capital requirements rules
19 May 2011
The Commission has requested Greece, Italy, Poland, Portugal, Slovenia and Spain to notify measures within two months to implement important rules concerning the capital adequacy and the remuneration policies of financial institutions, as laid down in CRD III.
The deadline for implementing the rules in question was 1 January 2011. The Commission has also requested Belgium, Luxemburg, Slovakia and Sweden to implement those parts of the Directive that they have so far failed to. The aim of the Directive is to ensure the financial soundness of banks and investment firms and to address excessive and imprudent risk-taking in the banking sector promoted by improperly designed remuneration practices which led to the failure of individual institutions and problems to the society as a whole. Timely and correct implementation of the Directive is necessary to address these concerns. The Commission's requests to the Member States concerned take the form of "reasoned opinions". If the national authorities do not notify the necessary implementing measures within two months, the Commission may refer the Member States concerned to the Court of Justice.
How are the Member States not respecting these rules?
While the majority of Member States have fully implemented the Directive, ten Member States – Belgium, Greece, Italy, Luxemburg, Poland, Portugal, Slovenia, Slovakia, Spain and Sweden – still have to implement some or all of its provisions. In Greece, Italy, Poland, Portugal, Slovenia and Spain, all of the Directive's provisions still have to be implemented. In four Member States, additional or secondary legislation is still required in order to implement a number of provisions, mainly related to the pre-existing minimum capital requirements (Belgium, Luxembourg, Sweden and Slovakia) and the remuneration provisions (Slovakia).
How are EU citizens and/or businesses suffering as a result?
The Directive aims at ensuring the financial soundness of banks and investment firms, and at reducing excessive and imprudent risk-taking practices which may be supported by improperly designed remuneration practices. The current financial crisis proves how important addressing these two aspects is for citizens, businesses and society as a whole. If common rules are not upheld at the same level across the EU, this would leave room for current loopholes to be exploited.
Press release
© European Commission
