Bank capital requirements: Council reaches broad political agreement

The Economic and Financial Affairs Council on 5 March 2013 broadly endorsed the outcome of the most recent political trilogue of 27 February 2013 with the European Parliament on stricter capital requirements for banks ("CRD 4" package).

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The CRD 4 package will turn into EU law a comprehensive set of international standards known as the Basel III agreement.

These new European rules are also aimed at increasing financial stability, by making the banking sector more resilient to financial shocks, and at contributing to sustainable economic growth, by introducing harmonised rules required by the single market and at the same time ensuring that credit continues to flow to the real economy.

The Council deliberation focussed on six key issues as set out in a report by the Irish Presidency, including bankers' bonuses.

The Irish Presidency concluded the discussion by noting a broad majority in favour of the compromise package. On that basis it mandated the Permanent Representatives Committee to finalise the negotiations with the Parliament. "There are some outstanding technical points, including  the date of entry into force and some details of how the remuneration cap is to be implemented, which we will try to iron out with the Parliament over the coming weeks," said Finance Minister of Ireland Michael Noonan, who chaired the meeting.

The final adoption of the package requires a qualified majority in the Council, in agreement with the Parliament.

See also:

• Council debate (video in all languages)
• Council press conference (video in several languages)
• Irish Presidency press release on provisional agreement with the European Parliament, 27 February 2013 (pdf)
• EU single market: regulatory capital (Commission website)